Correlation Between Gold Reserve and Kirkland Lake
Can any of the company-specific risk be diversified away by investing in both Gold Reserve 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 Reserve 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 Reserve and Kirkland Lake Gold, you can compare the effects of market volatilities on Gold Reserve 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 Reserve with a short position of Kirkland Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Reserve and Kirkland Lake.
Diversification Opportunities for Gold Reserve 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 Reserve 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 Reserve 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 Reserve 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 Reserve i.e., Gold Reserve and Kirkland Lake go up and down completely randomly.
Pair Corralation between Gold Reserve and Kirkland Lake
If you would invest (100.00) in Kirkland Lake Gold on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Kirkland Lake Gold or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Gold Reserve vs. Kirkland Lake Gold
Performance |
| Timeline |
| Gold Reserve |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gold Reserve and Kirkland Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Reserve and Kirkland Lake
The main advantage of trading using opposite Gold Reserve and Kirkland Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Reserve 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 Reserve vs. Aurelia Metals Limited | Gold Reserve vs. Adriatic Metals PLC | Gold Reserve vs. Progressive Planet Solutions | Gold Reserve vs. Edison Cobalt Corp |
| Kirkland Lake vs. Arrow Electronics | Kirkland Lake vs. Digi International | Kirkland Lake vs. Kite Realty Group | Kirkland Lake vs. Usio Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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