Correlation Between AiMedia Technologies and NEWMONT PORATION
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and NEWMONT PORATION 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 AiMedia Technologies and NEWMONT PORATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and NEWMONT PORATION CDI, you can compare the effects of market volatilities on AiMedia Technologies and NEWMONT PORATION 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 AiMedia Technologies with a short position of NEWMONT PORATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and NEWMONT PORATION.
Diversification Opportunities for AiMedia Technologies and NEWMONT PORATION
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and NEWMONT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and NEWMONT PORATION CDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT PORATION CDI and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with NEWMONT PORATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWMONT PORATION CDI has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and NEWMONT PORATION go up and down completely randomly.
Pair Corralation between AiMedia Technologies and NEWMONT PORATION
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.82 times more return on investment than NEWMONT PORATION. However, AiMedia Technologies is 1.82 times more volatile than NEWMONT PORATION CDI. It trades about 0.1 of its potential returns per unit of risk. NEWMONT PORATION CDI is currently generating about 0.03 per unit of risk. If you would invest 27.00 in AiMedia Technologies on September 12, 2024 and sell it today you would earn a total of 57.00 from holding AiMedia Technologies or generate 211.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.33% |
| Values | Daily Returns |
AiMedia Technologies vs. NEWMONT PORATION CDI
Performance |
| Timeline |
| AiMedia Technologies |
| NEWMONT PORATION CDI |
AiMedia Technologies and NEWMONT PORATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and NEWMONT PORATION
The main advantage of trading using opposite AiMedia Technologies and NEWMONT PORATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, NEWMONT PORATION 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 PORATION will offset losses from the drop in NEWMONT PORATION's long position.| AiMedia Technologies vs. Finexia Financial Group | AiMedia Technologies vs. Kkr Credit Income | AiMedia Technologies vs. Centaurus Metals | AiMedia Technologies vs. K2 Asset Management |
| NEWMONT PORATION vs. AiMedia Technologies | NEWMONT PORATION vs. Hutchison Telecommunications | NEWMONT PORATION vs. Step One Clothing | NEWMONT PORATION vs. COAST ENTERTAINMENT HOLDINGS |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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