Correlation Between Newmont Corp and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Newmont Corp and Sabien Technology 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 Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont Corp and Sabien Technology Group, you can compare the effects of market volatilities on Newmont Corp and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Corp and Sabien Technology.
Diversification Opportunities for Newmont Corp and Sabien Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newmont and Sabien is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Corp and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Newmont Corp i.e., Newmont Corp and Sabien Technology go up and down completely randomly.
Pair Corralation between Newmont Corp and Sabien Technology
Assuming the 90 days trading horizon Newmont Corp is expected to generate 5.87 times less return on investment than Sabien Technology. But when comparing it to its historical volatility, Newmont Corp is 1.7 times less risky than Sabien Technology. It trades about 0.01 of its potential returns per unit of risk. Sabien Technology Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,013 in Sabien Technology Group on October 28, 2024 and sell it today you would earn a total of 87.00 from holding Sabien Technology Group or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Newmont Corp vs. Sabien Technology Group
Performance |
| Timeline |
| Newmont Corp |
| Sabien Technology |
Newmont Corp and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Corp and Sabien Technology
The main advantage of trading using opposite Newmont Corp and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Corp position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Newmont Corp vs. Melia Hotels | Newmont Corp vs. Zoom Video Communications | Newmont Corp vs. STMicroelectronics NV | Newmont Corp vs. Ecofin Global Utilities |
| Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Toyota Motor Corp | Sabien Technology vs. State Bank of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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