Correlation Between Zoom Video and Newmont Corp
Can any of the company-specific risk be diversified away by investing in both Zoom Video and Newmont Corp 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 Zoom Video and Newmont Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and Newmont Corp, you can compare the effects of market volatilities on Zoom Video and Newmont Corp 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 Zoom Video with a short position of Newmont Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and Newmont Corp.
Diversification Opportunities for Zoom Video and Newmont Corp
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zoom and Newmont is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and Newmont Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Corp and Zoom Video 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 Zoom Video Communications are associated (or correlated) with Newmont Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Corp has no effect on the direction of Zoom Video i.e., Zoom Video and Newmont Corp go up and down completely randomly.
Pair Corralation between Zoom Video and Newmont Corp
Assuming the 90 days trading horizon Zoom Video Communications is expected to under-perform the Newmont Corp. But the stock apears to be less risky and, when comparing its historical volatility, Zoom Video Communications is 1.62 times less risky than Newmont Corp. The stock trades about -0.38 of its potential returns per unit of risk. The Newmont Corp is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 4,242 in Newmont Corp on October 13, 2024 and sell it today you would lose (275.00) from holding Newmont Corp or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zoom Video Communications vs. Newmont Corp
Performance |
| Timeline |
| Zoom Video Communications |
| Newmont Corp |
Zoom Video and Newmont Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and Newmont Corp
The main advantage of trading using opposite Zoom Video and Newmont Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, Newmont Corp 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 Corp will offset losses from the drop in Newmont Corp's long position.| Zoom Video vs. Allianz Technology Trust | Zoom Video vs. McEwen Mining | Zoom Video vs. Spotify Technology SA | Zoom Video vs. Fortuna Silver Mines |
| Newmont Corp vs. Gear4music Plc | Newmont Corp vs. Taylor Maritime Investments | Newmont Corp vs. Zoom Video Communications | Newmont Corp vs. Science in Sport |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |