Correlation Between Mayfair Gold and Konoike Transport
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and Konoike Transport 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 Mayfair Gold and Konoike Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Konoike Transport CoLtd, you can compare the effects of market volatilities on Mayfair Gold and Konoike Transport 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 Mayfair Gold with a short position of Konoike Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Konoike Transport.
Diversification Opportunities for Mayfair Gold and Konoike Transport
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mayfair and Konoike is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Konoike Transport CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konoike Transport CoLtd and Mayfair 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 Mayfair Gold Corp are associated (or correlated) with Konoike Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konoike Transport CoLtd has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and Konoike Transport go up and down completely randomly.
Pair Corralation between Mayfair Gold and Konoike Transport
Assuming the 90 days horizon Mayfair Gold Corp is expected to generate 2.85 times more return on investment than Konoike Transport. However, Mayfair Gold is 2.85 times more volatile than Konoike Transport CoLtd. It trades about 0.1 of its potential returns per unit of risk. Konoike Transport CoLtd is currently generating about 0.17 per unit of risk. If you would invest 135.00 in Mayfair Gold Corp on September 11, 2025 and sell it today you would earn a total of 30.00 from holding Mayfair Gold Corp or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Konoike Transport CoLtd
Performance |
| Timeline |
| Mayfair Gold Corp |
| Konoike Transport CoLtd |
Mayfair Gold and Konoike Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Konoike Transport
The main advantage of trading using opposite Mayfair Gold and Konoike Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, Konoike Transport 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 Konoike Transport will offset losses from the drop in Konoike Transport's long position.| Mayfair Gold vs. Loncor Gold | Mayfair Gold vs. Tudor Gold Corp | Mayfair Gold vs. Minera Alamos | Mayfair Gold vs. 1911 Gold Corp |
| Konoike Transport vs. Alaska Air Group | Konoike Transport vs. LAir Liquide SA | Konoike Transport vs. Mayfair Gold Corp | Konoike Transport vs. Harmony Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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