Correlation Between Kinross Gold and Elemental Royalties

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

Diversification Opportunities for Kinross Gold and Elemental Royalties

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kinross and Elemental is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold Corp and Elemental Royalties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elemental Royalties Corp 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 Corp are associated (or correlated) with Elemental Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elemental Royalties Corp has no effect on the direction of Kinross Gold i.e., Kinross Gold and Elemental Royalties go up and down completely randomly.

Pair Corralation between Kinross Gold and Elemental Royalties

Given the investment horizon of 90 days Kinross Gold Corp is expected to generate 0.97 times more return on investment than Elemental Royalties. However, Kinross Gold Corp is 1.03 times less risky than Elemental Royalties. It trades about 0.13 of its potential returns per unit of risk. Elemental Royalties Corp is currently generating about 0.07 per unit of risk. If you would invest  757.00  in Kinross Gold Corp on August 16, 2025 and sell it today you would earn a total of  2,823  from holding Kinross Gold Corp or generate 372.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kinross Gold Corp  vs.  Elemental Royalties Corp

 Performance 
       Timeline  
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 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Kinross Gold displayed solid returns over the last few months and may actually be approaching a breakup point.
Elemental Royalties Corp 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Elemental Royalties Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Elemental Royalties showed solid returns over the last few months and may actually be approaching a breakup point.

Kinross Gold and Elemental Royalties Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinross Gold and Elemental Royalties

The main advantage of trading using opposite Kinross Gold and Elemental Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Elemental Royalties 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 Elemental Royalties will offset losses from the drop in Elemental Royalties' long position.
The idea behind Kinross Gold Corp and Elemental Royalties 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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