Correlation Between K9 Gold and Sassy Resources

Can any of the company-specific risk be diversified away by investing in both K9 Gold and Sassy 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 K9 Gold and Sassy Resources 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 Sassy Resources, you can compare the effects of market volatilities on K9 Gold and Sassy 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 K9 Gold with a short position of Sassy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of K9 Gold and Sassy Resources.

Diversification Opportunities for K9 Gold and Sassy Resources

0.3

Correlation Coefficient

K9 Gold  Sassy Resources

Weak diversification

The 3 months correlation between WDFCF and Sassy is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding K9 Gold Corp and Sassy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sassy Resources 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 Sassy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sassy Resources has no effect on the direction of K9 Gold i.e., K9 Gold and Sassy Resources go up and down completely randomly.

Pair Corralation between K9 Gold and Sassy Resources

Assuming the 90 days horizon K9 Gold Corp is expected to generate 0.77 times more return on investment than Sassy Resources. However, K9 Gold Corp is 1.31 times less risky than Sassy Resources. It trades about -0.04 of its potential returns per unit of risk. Sassy Resources is currently generating about -0.04 per unit of risk. If you would invest  9.85  in K9 Gold Corp on April 29, 2025 and sell it today you would lose (2.45) from holding K9 Gold Corp or give up 24.87% of portfolio value over 90 days.

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

K9 Gold Corp  vs.  Sassy Resources

K9 Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days K9 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Sassy Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with K9 Gold and Sassy Resources

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

The idea behind K9 Gold Corp and Sassy 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.