Correlation Between Hudbay Minerals and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Hudbay Minerals and Newmont Goldcorp 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 Hudbay Minerals and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudbay Minerals and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Hudbay Minerals and Newmont Goldcorp 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 Hudbay Minerals with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudbay Minerals and Newmont Goldcorp.
Diversification Opportunities for Hudbay Minerals and Newmont Goldcorp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hudbay and Newmont is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hudbay Minerals and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp Corp and Hudbay Minerals 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 Hudbay Minerals are associated (or correlated) with Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Hudbay Minerals i.e., Hudbay Minerals and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Hudbay Minerals and Newmont Goldcorp
Considering the 90-day investment horizon Hudbay Minerals is expected to generate 1.41 times less return on investment than Newmont Goldcorp. In addition to that, Hudbay Minerals is 1.24 times more volatile than Newmont Goldcorp Corp. It trades about 0.23 of its total potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.39 per unit of volatility. If you would invest 3,702 in Newmont Goldcorp Corp on October 20, 2024 and sell it today you would earn a total of 465.00 from holding Newmont Goldcorp Corp or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudbay Minerals vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Hudbay Minerals |
| Newmont Goldcorp Corp |
Hudbay Minerals and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudbay Minerals and Newmont Goldcorp
The main advantage of trading using opposite Hudbay Minerals and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudbay Minerals position performs unexpectedly, Newmont Goldcorp 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 Goldcorp will offset losses from the drop in Newmont Goldcorp's long position.| Hudbay Minerals vs. Teck Resources Ltd | Hudbay Minerals vs. Fortuna Silver Mines | Hudbay Minerals vs. Osisko Gold Ro | Hudbay Minerals vs. Nexa Resources SA |
| Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Agnico Eagle Mines | Newmont Goldcorp vs. Kinross Gold | Newmont Goldcorp vs. Wheaton Precious Metals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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