Correlation Between Kirkland Lake and Polyus PAO

Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and Polyus PAO 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 Polyus PAO 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 Polyus PAO ADR, you can compare the effects of market volatilities on Kirkland Lake and Polyus PAO 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 Polyus PAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and Polyus PAO.

Diversification Opportunities for Kirkland Lake and Polyus PAO

0.0

Correlation Coefficient

Kirkland Lake  Polyus PAO

Pay attention - limited upside

The 3 months correlation between Kirkland and Polyus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and Polyus PAO ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyus PAO ADR 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 Polyus PAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyus PAO ADR has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and Polyus PAO go up and down completely randomly.

Pair Corralation between Kirkland Lake and Polyus PAO

If you would invest  2,100  in Polyus PAO ADR on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Polyus PAO ADR 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.  Polyus PAO ADR

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.

Polyus PAO ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polyus PAO ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Polyus PAO is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kirkland Lake and Polyus PAO

The main advantage of trading using opposite Kirkland Lake and Polyus PAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, Polyus PAO 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 Polyus PAO will offset losses from the drop in Polyus PAO's long position.

The idea behind Kirkland Lake Gold and Polyus PAO ADR 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.