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

Kirkland Lake  Newmont Goldcorp

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

Kirkland Lake Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kirkland Lake Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Kirkland Lake is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Newmont Goldcorp Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Newmont Goldcorp Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Newmont Goldcorp may actually be approaching a critical reversion point that can send shares even higher in May 2024.

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.

The idea behind Kirkland Lake Gold and Newmont Goldcorp Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.