Correlation Between Newmont Corp and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Newmont Corp and Uniper SE 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 Newmont Corp and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont Corp and Uniper SE, you can compare the effects of market volatilities on Newmont Corp and Uniper SE 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 Newmont Corp with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Corp and Uniper SE.
Diversification Opportunities for Newmont Corp and Uniper SE
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Newmont and Uniper is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Corp and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and Newmont Corp 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 Newmont Corp are associated (or correlated) with Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Newmont Corp i.e., Newmont Corp and Uniper SE go up and down completely randomly.
Pair Corralation between Newmont Corp and Uniper SE
Assuming the 90 days trading horizon Newmont Corp is expected to under-perform the Uniper SE. But the stock apears to be less risky and, when comparing its historical volatility, Newmont Corp is 1.8 times less risky than Uniper SE. The stock trades about -0.01 of its potential returns per unit of risk. The Uniper SE is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6,084 in Uniper SE on October 13, 2024 and sell it today you would lose (1,737) from holding Uniper SE or give up 28.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.2% |
| Values | Daily Returns |
Newmont Corp vs. Uniper SE
Performance |
| Timeline |
| Newmont Corp |
| Uniper SE |
Newmont Corp and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Corp and Uniper SE
The main advantage of trading using opposite Newmont Corp and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Corp position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Newmont Corp vs. Lindsell Train Investment | Newmont Corp vs. Adriatic Metals | Newmont Corp vs. Empire Metals Limited | Newmont Corp vs. EJF Investments |
| Uniper SE vs. Accesso Technology Group | Uniper SE vs. Invesco Physical Silver | Uniper SE vs. Sabien Technology Group | Uniper SE vs. Coeur Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |