Correlation Between Kinross Gold and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Alamos Gold 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 Kinross Gold and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold Corp and Alamos Gold, you can compare the effects of market volatilities on Kinross Gold and Alamos Gold 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 Kinross Gold with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Alamos Gold.
Diversification Opportunities for Kinross Gold and Alamos Gold
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinross and Alamos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold Corp and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Kinross Gold 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 Kinross Gold Corp are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Kinross Gold i.e., Kinross Gold and Alamos Gold go up and down completely randomly.
Pair Corralation between Kinross Gold and Alamos Gold
Given the investment horizon of 90 days Kinross Gold Corp is expected to generate 1.21 times more return on investment than Alamos Gold. However, Kinross Gold is 1.21 times more volatile than Alamos Gold. It trades about -0.03 of its potential returns per unit of risk. Alamos Gold is currently generating about -0.08 per unit of risk. If you would invest 3,636 in Kinross Gold Corp on August 20, 2025 and sell it today you would lose (131.00) from holding Kinross Gold Corp or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinross Gold Corp vs. Alamos Gold
Performance |
| Timeline |
| Kinross Gold Corp |
| Alamos Gold |
Kinross Gold and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Alamos Gold
The main advantage of trading using opposite Kinross Gold and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Alamos Gold 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| Kinross Gold vs. Nutrien | Kinross Gold vs. Franco Nevada | Kinross Gold vs. Lundin Gold | Kinross Gold vs. Alamos Gold |
| Alamos Gold vs. Pan American Silver | Alamos Gold vs. Lundin Gold | Alamos Gold vs. Ivanhoe Mines | Alamos Gold vs. Endeavour Mining Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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