Correlation Between AngloGold Ashanti and Kirkland Lake
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti 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 AngloGold Ashanti and Kirkland Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and Kirkland Lake Gold, you can compare the effects of market volatilities on AngloGold Ashanti 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 AngloGold Ashanti with a short position of Kirkland Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and Kirkland Lake.
Diversification Opportunities for AngloGold Ashanti and Kirkland Lake
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AngloGold and Kirkland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc 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 AngloGold Ashanti 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 AngloGold Ashanti plc 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 AngloGold Ashanti i.e., AngloGold Ashanti and Kirkland Lake go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and Kirkland Lake
If you would invest 1,965 in AngloGold Ashanti plc on January 19, 2024 and sell it today you would earn a total of 420.00 from holding AngloGold Ashanti plc or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AngloGold Ashanti plc vs. Kirkland Lake Gold
Performance |
| Timeline |
| AngloGold Ashanti plc |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AngloGold Ashanti and Kirkland Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngloGold Ashanti and Kirkland Lake
The main advantage of trading using opposite AngloGold Ashanti and Kirkland Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti 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.| AngloGold Ashanti vs. Paramount Gold Nevada | AngloGold Ashanti vs. Liberty Gold Corp | AngloGold Ashanti vs. International Tower Hill | AngloGold Ashanti vs. Allegiant Gold |
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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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