Correlation Between Kirkland Lake and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and Newmont Goldcorp 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 Newmont Goldcorp 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 Newmont Goldcorp Corp, you can compare the effects of market volatilities on Kirkland Lake and Newmont Goldcorp 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 Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and Newmont Goldcorp.
Diversification Opportunities for Kirkland Lake and Newmont Goldcorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirkland and Newmont is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp Corp 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 Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Kirkland Lake and Newmont Goldcorp
If you would invest (100.00) in Kirkland Lake Gold on January 18, 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 |
Kirkland Lake Gold vs. Newmont Goldcorp Corp
Performance |
Timeline |
Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newmont Goldcorp Corp |
Kirkland Lake and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kirkland Lake and Newmont Goldcorp
The main advantage of trading using opposite Kirkland Lake and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, Newmont Goldcorp 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 Newmont Goldcorp will offset losses from the drop in Newmont Goldcorp's long position.Kirkland Lake vs. RBC Bearings Incorporated | Kirkland Lake vs. Teleflex Incorporated | Kirkland Lake vs. Eastern Co | Kirkland Lake vs. Advanced Micro Devices |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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