Correlation Between Northern Star and Kingsrose Mining
Can any of the company-specific risk be diversified away by investing in both Northern Star and Kingsrose Mining 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 Northern Star and Kingsrose Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Star Resources and Kingsrose Mining, you can compare the effects of market volatilities on Northern Star and Kingsrose Mining 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 Northern Star with a short position of Kingsrose Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Star and Kingsrose Mining.
Diversification Opportunities for Northern Star and Kingsrose Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Northern and Kingsrose is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Northern Star Resources and Kingsrose Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsrose Mining and Northern Star 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 Northern Star Resources are associated (or correlated) with Kingsrose Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsrose Mining has no effect on the direction of Northern Star i.e., Northern Star and Kingsrose Mining go up and down completely randomly.
Pair Corralation between Northern Star and Kingsrose Mining
Assuming the 90 days trading horizon Northern Star Resources is expected to generate 0.52 times more return on investment than Kingsrose Mining. However, Northern Star Resources is 1.93 times less risky than Kingsrose Mining. It trades about 0.17 of its potential returns per unit of risk. Kingsrose Mining is currently generating about 0.02 per unit of risk. If you would invest 2,010 in Northern Star Resources on September 6, 2025 and sell it today you would earn a total of 599.00 from holding Northern Star Resources or generate 29.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Star Resources vs. Kingsrose Mining
Performance |
| Timeline |
| Northern Star Resources |
| Kingsrose Mining |
Northern Star and Kingsrose Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Star and Kingsrose Mining
The main advantage of trading using opposite Northern Star and Kingsrose Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Star position performs unexpectedly, Kingsrose Mining 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 Kingsrose Mining will offset losses from the drop in Kingsrose Mining's long position.| Northern Star vs. Healthco Healthcare and | Northern Star vs. Mount Gibson Iron | Northern Star vs. Macquarie Technology Group | Northern Star vs. Technology One |
| Kingsrose Mining vs. Northern Star Resources | Kingsrose Mining vs. Evolution Mining | Kingsrose Mining vs. Alcoa | Kingsrose Mining vs. Bluescope Steel |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |