Correlation Between Kirkland Lake and NovaGold Resources
Can any of the company-specific risk be diversified away by investing in both Kirkland Lake and NovaGold Resources 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 NovaGold Resources 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 NovaGold Resources, you can compare the effects of market volatilities on Kirkland Lake and NovaGold Resources 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 NovaGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirkland Lake and NovaGold Resources.
Diversification Opportunities for Kirkland Lake and NovaGold Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirkland and NovaGold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kirkland Lake Gold and NovaGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaGold Resources 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 NovaGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NovaGold Resources has no effect on the direction of Kirkland Lake i.e., Kirkland Lake and NovaGold Resources go up and down completely randomly.
Pair Corralation between Kirkland Lake and NovaGold Resources
If you would invest (100.00) in Kirkland Lake Gold on January 19, 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. NovaGold Resources
Performance |
| Timeline |
| Kirkland Lake Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NovaGold Resources |
Kirkland Lake and NovaGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirkland Lake and NovaGold Resources
The main advantage of trading using opposite Kirkland Lake and NovaGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirkland Lake position performs unexpectedly, NovaGold Resources 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 NovaGold Resources will offset losses from the drop in NovaGold Resources' long position.| Kirkland Lake vs. National Beverage Corp | Kirkland Lake vs. Tyson Foods | Kirkland Lake vs. Hanover Foods | Kirkland Lake vs. Cytek Biosciences |
| NovaGold Resources vs. Paramount Gold Nevada | NovaGold Resources vs. Liberty Gold Corp | NovaGold Resources vs. International Tower Hill | NovaGold Resources vs. Allegiant Gold |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |