Correlation Between KGL Resources and VR Resources

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

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

Diversification Opportunities for KGL Resources and VR Resources

0.0

Correlation Coefficient

KGL Resources  VR Resources

Pay attention - limited upside

The 3 months correlation between KGL and VRRCF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KGL Resources and VR Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VR Resources and KGL 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 KGL Resources are associated (or correlated) with VR Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VR Resources has no effect on the direction of KGL Resources i.e., KGL Resources and VR Resources go up and down completely randomly.

Pair Corralation between KGL Resources and VR Resources

If you would invest  1.84  in VR Resources on September 8, 2025 and sell it today you would lose (0.55) from holding VR Resources or give up 29.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

KGL Resources  vs.  VR Resources

KGL Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days KGL Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, KGL Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

VR Resources

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in VR Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, VR Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KGL Resources and VR Resources

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

The idea behind KGL Resources and VR Resources 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.