Correlation Between Kalo Gold and Minera Alamos

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Can any of the company-specific risk be diversified away by investing in both Kalo Gold and Minera Alamos 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 Kalo Gold and Minera Alamos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kalo Gold Holdings and Minera Alamos, you can compare the effects of market volatilities on Kalo Gold and Minera Alamos 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 Kalo Gold with a short position of Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalo Gold and Minera Alamos.

Diversification Opportunities for Kalo Gold and Minera Alamos

KaloMineraDiversified AwayKaloMineraDiversified Away100%
0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kalo and Minera is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kalo Gold Holdings and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos and Kalo 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 Kalo Gold Holdings are associated (or correlated) with Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of Kalo Gold i.e., Kalo Gold and Minera Alamos go up and down completely randomly.

Pair Corralation between Kalo Gold and Minera Alamos

Assuming the 90 days horizon Kalo Gold Holdings is expected to generate 3.82 times more return on investment than Minera Alamos. However, Kalo Gold is 3.82 times more volatile than Minera Alamos. It trades about 0.13 of its potential returns per unit of risk. Minera Alamos is currently generating about 0.15 per unit of risk. If you would invest  3.54  in Kalo Gold Holdings on November 27, 2024 and sell it today you would earn a total of  0.83  from holding Kalo Gold Holdings or generate 23.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kalo Gold Holdings  vs.  Minera Alamos

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -2002040
JavaScript chart by amCharts 3.21.15KLGDF MAIFF
       Timeline  
Kalo Gold Holdings 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kalo Gold Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Kalo Gold reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb0.020.0250.030.0350.040.045
Minera Alamos 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Minera Alamos are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Minera Alamos may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.170.180.190.20.210.220.230.240.250.26

Kalo Gold and Minera Alamos Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-32.13-24.07-16.0-7.930.08.2316.7525.2633.7842.29 0.0050.0100.0150.020
JavaScript chart by amCharts 3.21.15KLGDF MAIFF
       Returns  

Pair Trading with Kalo Gold and Minera Alamos

The main advantage of trading using opposite Kalo Gold and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalo Gold position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' long position.
The idea behind Kalo Gold Holdings and Minera Alamos 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.

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