Correlation Between K9 Gold and Genius Metals

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

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

Diversification Opportunities for K9 Gold and Genius Metals

0.53

Correlation Coefficient

K9 Gold  Genius Metals

Very weak diversification

The 3 months correlation between WDFCF and Genius is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding K9 Gold Corp and Genius Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Metals and K9 Gold 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 K9 Gold Corp are associated (or correlated) with Genius Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Metals has no effect on the direction of K9 Gold i.e., K9 Gold and Genius Metals go up and down completely randomly.

Pair Corralation between K9 Gold and Genius Metals

Assuming the 90 days horizon K9 Gold Corp is expected to generate 2.35 times more return on investment than Genius Metals. However, K9 Gold is 2.35 times more volatile than Genius Metals. It trades about 0.09 of its potential returns per unit of risk. Genius Metals is currently generating about 0.04 per unit of risk. If you would invest  7.74  in K9 Gold Corp on May 11, 2025 and sell it today you would earn a total of  2.26  from holding K9 Gold Corp or generate 29.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

K9 Gold Corp  vs.  Genius Metals

K9 Gold Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in K9 Gold Corp are ranked lower than 7 (%) 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.

Genius Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genius Metals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Genius Metals may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with K9 Gold and Genius Metals

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

The idea behind K9 Gold Corp and Genius Metals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.