Correlation Between Newmont Corp and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Newmont Corp and Baker Hughes 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 Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont Corp and Baker Hughes Co, you can compare the effects of market volatilities on Newmont Corp and Baker Hughes 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 Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Corp and Baker Hughes.
Diversification Opportunities for Newmont Corp and Baker Hughes
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newmont and Baker is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Corp and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes 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 Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Newmont Corp i.e., Newmont Corp and Baker Hughes go up and down completely randomly.
Pair Corralation between Newmont Corp and Baker Hughes
Assuming the 90 days trading horizon Newmont Corp is expected to under-perform the Baker Hughes. In addition to that, Newmont Corp is 1.2 times more volatile than Baker Hughes Co. It trades about -0.01 of its total potential returns per unit of risk. Baker Hughes Co is currently generating about 0.05 per unit of volatility. If you would invest 2,765 in Baker Hughes Co on September 24, 2024 and sell it today you would earn a total of 1,247 from holding Baker Hughes Co or generate 45.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Newmont Corp vs. Baker Hughes Co
Performance |
| Timeline |
| Newmont Corp |
| Baker Hughes |
Newmont Corp and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Corp and Baker Hughes
The main advantage of trading using opposite Newmont Corp and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Corp position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Newmont Corp vs. Uniper SE | Newmont Corp vs. Mulberry Group PLC | Newmont Corp vs. London Security Plc | Newmont Corp vs. Triad Group PLC |
| Baker Hughes vs. Schweiter Technologies AG | Baker Hughes vs. Playtech Plc | Baker Hughes vs. Tyson Foods Cl | Baker Hughes vs. Zegona Communications Plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |