Correlation Between Kingsrose Mining and Compass

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

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

Diversification Opportunities for Kingsrose Mining and Compass

0.0

Correlation Coefficient

Kingsrose Mining  Compass

Pay attention - limited upside

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

Pair Corralation between Kingsrose Mining and Compass

If you would invest  928.00  in Compass on September 9, 2025 and sell it today you would earn a total of  114.00  from holding Compass or generate 12.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Kingsrose Mining Limited  vs.  Compass

Kingsrose Mining

Risk-Adjusted Performance

Weakest

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

Compass

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compass are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Compass reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kingsrose Mining and Compass

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

The idea behind Kingsrose Mining Limited and Compass 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.