Correlation Between Kirkland Lake and AngloGold Ashanti
Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and AngloGold Ashanti 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 Kirkland Lake and AngloGold Ashanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirkland Lake Gold and AngloGold Ashanti plc, you can compare the effects of market volatilities on Kirkland Lake and AngloGold Ashanti 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 Kirkland Lake with a short position of AngloGold Ashanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and AngloGold Ashanti.
Diversification Opportunities for Kirkland Lake and AngloGold Ashanti
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirkland and AngloGold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and AngloGold Ashanti plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngloGold Ashanti plc and Kirkland Lake 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 Kirkland Lake Gold are associated (or correlated) with AngloGold Ashanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngloGold Ashanti plc has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and AngloGold Ashanti go up and down completely randomly.
Pair Corralation between Kirkland Lake and AngloGold Ashanti
If you would invest 1,919 in AngloGold Ashanti plc on January 25, 2024 and sell it today you would earn a total of 292.00 from holding AngloGold Ashanti plc or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kirkland Lake Gold vs. AngloGold Ashanti plc
Performance |
| Timeline |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AngloGold Ashanti plc |
Kirkland Lake and AngloGold Ashanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirkland Lake and AngloGold Ashanti
The main advantage of trading using opposite Kirkland Lake and AngloGold Ashanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, AngloGold Ashanti 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 AngloGold Ashanti will offset losses from the drop in AngloGold Ashanti's long position.| Kirkland Lake vs. Alphatec Holdings | Kirkland Lake vs. Viemed Healthcare | Kirkland Lake vs. The Coca Cola | Kirkland Lake vs. Boston Beer |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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