Correlation Between Gold Road and Kirkland Lake
Can any of the company-specific risk be diversified away by investing in both Gold Road and Kirkland Lake 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 Gold Road and Kirkland Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and Kirkland Lake Gold, you can compare the effects of market volatilities on Gold Road and Kirkland Lake 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 Gold Road with a short position of Kirkland Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and Kirkland Lake.
Diversification Opportunities for Gold Road and Kirkland Lake
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gold and Kirkland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and Kirkland Lake Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirkland Lake Gold and Gold Road 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 Gold Road Resources are associated (or correlated) with Kirkland Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirkland Lake Gold has no effect on the direction of Gold Road i.e., Gold Road and Kirkland Lake go up and down completely randomly.
Pair Corralation between Gold Road and Kirkland Lake
If you would invest 99.00 in Gold Road Resources on January 20, 2024 and sell it today you would earn a total of 6.00 from holding Gold Road Resources or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Gold Road Resources vs. Kirkland Lake Gold
Performance |
| Timeline |
| Gold Road Resources |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gold Road and Kirkland Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and Kirkland Lake
The main advantage of trading using opposite Gold Road and Kirkland Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, Kirkland Lake 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 Kirkland Lake will offset losses from the drop in Kirkland Lake's long position.| Gold Road vs. Osisko Mining | Gold Road vs. Almadex Minerals | Gold Road vs. Galiano Gold | Gold Road vs. US Gold Corp |
| Kirkland Lake vs. Boot Barn Holdings | Kirkland Lake vs. United Parks Resorts | Kirkland Lake vs. Emerson Radio | Kirkland Lake vs. Silo Pharma |
Check out your portfolio center.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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