Correlation Between Teck Resources and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Teck Resources 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 Teck Resources and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teck Resources Ltd and Kinross Gold, you can compare the effects of market volatilities on Teck Resources 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 Teck Resources with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teck Resources and Kinross Gold.
Diversification Opportunities for Teck Resources and Kinross Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teck and Kinross is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Teck Resources Ltd and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Teck Resources 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 Teck Resources Ltd 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 has no effect on the direction of Teck Resources i.e., Teck Resources and Kinross Gold go up and down completely randomly.
Pair Corralation between Teck Resources and Kinross Gold
Given the investment horizon of 90 days Teck Resources is expected to generate 1.15 times less return on investment than Kinross Gold. But when comparing it to its historical volatility, Teck Resources Ltd is 1.12 times less risky than Kinross Gold. It trades about 0.15 of its potential returns per unit of risk. Kinross Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,143 in Kinross Gold on September 2, 2025 and sell it today you would earn a total of 704.00 from holding Kinross Gold or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Teck Resources Ltd vs. Kinross Gold
Performance |
| Timeline |
| Teck Resources |
| Kinross Gold |
Teck Resources and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teck Resources and Kinross Gold
The main advantage of trading using opposite Teck Resources and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teck Resources 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.| Teck Resources vs. PSI Software AG | Teck Resources vs. Prism Software | Teck Resources vs. Kingdee International Software | Teck Resources vs. Ross Stores |
| Kinross Gold vs. Fidelity National Information | Kinross Gold vs. National Storage REIT | Kinross Gold vs. Telephone and Data | Kinross Gold vs. Data Evolution Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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