Correlation Between Kirkland Lake and Alleghany
Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and Alleghany 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 Alleghany 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 Alleghany, you can compare the effects of market volatilities on Kirkland Lake and Alleghany 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 Alleghany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and Alleghany.
Diversification Opportunities for Kirkland Lake and Alleghany
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirkland and Alleghany is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and Alleghany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleghany 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 Alleghany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleghany has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and Alleghany go up and down completely randomly.
Pair Corralation between Kirkland Lake and Alleghany
If you would invest 84,779 in Alleghany on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Alleghany or generate 0.0% 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. Alleghany
Performance |
| Timeline |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alleghany |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kirkland Lake and Alleghany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirkland Lake and Alleghany
The main advantage of trading using opposite Kirkland Lake and Alleghany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, Alleghany 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 Alleghany will offset losses from the drop in Alleghany's long position.| Kirkland Lake vs. Boot Barn Holdings | Kirkland Lake vs. United Parks Resorts | Kirkland Lake vs. Emerson Radio | Kirkland Lake vs. Silo Pharma |
| Alleghany vs. Arhaus Inc | Alleghany vs. Simon Property Group | Alleghany vs. Paysafe | Alleghany vs. Valneva SE ADR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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