Correlation Between Gunsynd PLC and Kinross Gold

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Can any of the company-specific risk be diversified away by investing in both Gunsynd PLC and Kinross Gold 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 Gunsynd PLC and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunsynd PLC and Kinross Gold Corp, you can compare the effects of market volatilities on Gunsynd PLC and Kinross Gold 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 Gunsynd PLC with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunsynd PLC and Kinross Gold.

Diversification Opportunities for Gunsynd PLC and Kinross Gold

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Gunsynd and Kinross is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gunsynd PLC and Kinross Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold Corp and Gunsynd PLC 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 Gunsynd PLC are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold Corp has no effect on the direction of Gunsynd PLC i.e., Gunsynd PLC and Kinross Gold go up and down completely randomly.

Pair Corralation between Gunsynd PLC and Kinross Gold

Assuming the 90 days trading horizon Gunsynd PLC is expected to generate 2.39 times more return on investment than Kinross Gold. However, Gunsynd PLC is 2.39 times more volatile than Kinross Gold Corp. It trades about 0.1 of its potential returns per unit of risk. Kinross Gold Corp is currently generating about 0.18 per unit of risk. If you would invest  11.00  in Gunsynd PLC on August 17, 2025 and sell it today you would earn a total of  4.00  from holding Gunsynd PLC or generate 36.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.46%
ValuesDaily Returns

Gunsynd PLC  vs.  Kinross Gold Corp

 Performance 
       Timeline  
Gunsynd PLC 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gunsynd PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Gunsynd PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.
Kinross Gold Corp 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kinross Gold Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Kinross Gold unveiled solid returns over the last few months and may actually be approaching a breakup point.

Gunsynd PLC and Kinross Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gunsynd PLC and Kinross Gold

The main advantage of trading using opposite Gunsynd PLC and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunsynd PLC position performs unexpectedly, Kinross Gold 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.
The idea behind Gunsynd PLC and Kinross Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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