Correlation Between Newmont Corp and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both Newmont Corp and Mulberry Group 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 Mulberry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont Corp and Mulberry Group PLC, you can compare the effects of market volatilities on Newmont Corp and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Corp and Mulberry Group.
Diversification Opportunities for Newmont Corp and Mulberry Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newmont and Mulberry is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Corp and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group PLC 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of Newmont Corp i.e., Newmont Corp and Mulberry Group go up and down completely randomly.
Pair Corralation between Newmont Corp and Mulberry Group
Assuming the 90 days trading horizon Newmont Corp is expected to generate 0.63 times more return on investment than Mulberry Group. However, Newmont Corp is 1.59 times less risky than Mulberry Group. It trades about -0.01 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.03 per unit of risk. If you would invest 4,996 in Newmont Corp on October 13, 2024 and sell it today you would lose (1,029) from holding Newmont Corp or give up 20.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Newmont Corp vs. Mulberry Group PLC
Performance |
| Timeline |
| Newmont Corp |
| Mulberry Group PLC |
Newmont Corp and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Corp and Mulberry Group
The main advantage of trading using opposite Newmont Corp and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Corp position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| Newmont Corp vs. Gear4music Plc | Newmont Corp vs. Taylor Maritime Investments | Newmont Corp vs. Zoom Video Communications | Newmont Corp vs. Science in Sport |
| Mulberry Group vs. Jupiter Fund Management | Mulberry Group vs. Coeur Mining | Mulberry Group vs. Jacquet Metal Service | Mulberry Group vs. Rheinmetall AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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