Correlation Between Kirkland Lake and Protective Life
Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and Protective Life 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 Protective Life 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 Protective Life Dynamic, you can compare the effects of market volatilities on Kirkland Lake and Protective Life 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 Protective Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and Protective Life.
Diversification Opportunities for Kirkland Lake and Protective Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirkland and Protective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and Protective Life Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protective Life Dynamic 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 Protective Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protective Life Dynamic has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and Protective Life go up and down completely randomly.
Pair Corralation between Kirkland Lake and Protective Life
If you would invest (100.00) in Protective Life Dynamic on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Protective Life Dynamic or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirkland Lake Gold vs. Protective Life Dynamic
Performance |
| Timeline |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Protective Life Dynamic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kirkland Lake and Protective Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirkland Lake and Protective Life
The main advantage of trading using opposite Kirkland Lake and Protective Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, Protective Life 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 Protective Life will offset losses from the drop in Protective Life's long position.| Kirkland Lake vs. Arrow Electronics | Kirkland Lake vs. Digi International | Kirkland Lake vs. Kite Realty Group | Kirkland Lake vs. Usio Inc |
| Protective Life vs. Franklin Biotechnology Discovery | Protective Life vs. Pgim Jennison Technology | Protective Life vs. Allianzgi Technology Fund | Protective Life vs. Hennessy Technology Fund |
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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