Correlation Between Kinross Gold and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Meta Platforms at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kinross Gold and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Meta Platforms, you can compare the effects of market volatilities on Kinross Gold and Meta Platforms and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kinross Gold with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Meta Platforms.
Diversification Opportunities for Kinross Gold and Meta Platforms
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinross and Meta is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Kinross Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kinross Gold are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Kinross Gold i.e., Kinross Gold and Meta Platforms go up and down completely randomly.
Pair Corralation between Kinross Gold and Meta Platforms
If you would invest 572.00 in Kinross Gold on January 21, 2024 and sell it today you would earn a total of 105.00 from holding Kinross Gold or generate 18.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Kinross Gold vs. Meta Platforms
Performance |
Timeline |
Kinross Gold |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinross Gold and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinross Gold and Meta Platforms
The main advantage of trading using opposite Kinross Gold and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Meta Platforms can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Meta Platforms will offset losses from the drop in Meta Platforms' long position.Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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