Correlation Between Traction Uranium and K9 Gold

Can any of the company-specific risk be diversified away by investing in both Traction Uranium and K9 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 Traction Uranium and K9 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Traction Uranium Corp and K9 Gold Corp, you can compare the effects of market volatilities on Traction Uranium and K9 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 Traction Uranium with a short position of K9 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traction Uranium and K9 Gold.

Diversification Opportunities for Traction Uranium and K9 Gold

0.34

Correlation Coefficient

Traction Uranium  K9 Gold

Weak diversification

The 3 months correlation between Traction and WDFCF is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Traction Uranium Corp and K9 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K9 Gold Corp and Traction Uranium 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 Traction Uranium Corp are associated (or correlated) with K9 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K9 Gold Corp has no effect on the direction of Traction Uranium i.e., Traction Uranium and K9 Gold go up and down completely randomly.

Pair Corralation between Traction Uranium and K9 Gold

Assuming the 90 days horizon Traction Uranium is expected to generate 1.26 times less return on investment than K9 Gold. In addition to that, Traction Uranium is 1.23 times more volatile than K9 Gold Corp. It trades about 0.04 of its total potential returns per unit of risk. K9 Gold Corp is currently generating about 0.06 per unit of volatility. If you would invest  8.17  in K9 Gold Corp on May 6, 2025 and sell it today you would earn a total of  1.09  from holding K9 Gold Corp or generate 13.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Traction Uranium Corp  vs.  K9 Gold Corp

Traction Uranium Corp

Risk-Adjusted Performance

Insignificant

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

K9 Gold Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in K9 Gold Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, K9 Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Traction Uranium and K9 Gold

The main advantage of trading using opposite Traction Uranium and K9 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traction Uranium position performs unexpectedly, K9 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 K9 Gold will offset losses from the drop in K9 Gold's long position.

The idea behind Traction Uranium Corp and K9 Gold Corp 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.