Correlation Between Kermode Resources and Running Fox

Can any of the company-specific risk be diversified away by investing in both Kermode Resources and Running Fox 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 Kermode Resources and Running Fox into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kermode Resources and Running Fox Resource, you can compare the effects of market volatilities on Kermode Resources and Running Fox 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 Kermode Resources with a short position of Running Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kermode Resources and Running Fox.

Diversification Opportunities for Kermode Resources and Running Fox

0.34

Correlation Coefficient

Kermode Resources  Running Fox

Weak diversification

The 3 months correlation between Kermode and Running is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kermode Resources and Running Fox Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Running Fox Resource and Kermode 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 Kermode Resources are associated (or correlated) with Running Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Running Fox Resource has no effect on the direction of Kermode Resources i.e., Kermode Resources and Running Fox go up and down completely randomly.

Pair Corralation between Kermode Resources and Running Fox

Assuming the 90 days horizon Kermode Resources is expected to generate 5.23 times more return on investment than Running Fox. However, Kermode Resources is 5.23 times more volatile than Running Fox Resource. It trades about 0.09 of its potential returns per unit of risk. Running Fox Resource is currently generating about -0.12 per unit of risk. If you would invest  0.74  in Kermode Resources on August 18, 2025 and sell it today you would lose (0.53) from holding Kermode Resources or give up 71.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

Kermode Resources  vs.  Running Fox Resource

Kermode Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Kermode Resources are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kermode Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Running Fox Resource

Risk-Adjusted Performance

Weakest

Over the last 90 days Running Fox Resource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Kermode Resources and Running Fox

The main advantage of trading using opposite Kermode Resources and Running Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kermode Resources position performs unexpectedly, Running Fox 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 Running Fox will offset losses from the drop in Running Fox's long position.

The idea behind Kermode Resources and Running Fox Resource 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.