Correlation Between Mayfair Gold and Konoike Transport

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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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mayfair Gold Corp  vs.  Konoike Transport CoLtd

 Performance 
       Timeline  
Mayfair Gold Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mayfair Gold Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Mayfair Gold reported solid returns over the last few months and may actually be approaching a breakup point.
Konoike Transport CoLtd 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Konoike Transport CoLtd are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting forward indicators, Konoike Transport reported solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Mayfair Gold Corp and Konoike Transport CoLtd 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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