Correlation Between Intact Financial and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Intact Financial 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 Intact Financial and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Intact Financial 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 Intact Financial with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Newmont Goldcorp.
Diversification Opportunities for Intact Financial and Newmont Goldcorp
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intact and Newmont is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial 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 Intact Financial 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 Intact Financial 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 Intact Financial i.e., Intact Financial and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Intact Financial and Newmont Goldcorp
Assuming the 90 days trading horizon Intact Financial is expected to generate 6.65 times less return on investment than Newmont Goldcorp. But when comparing it to its historical volatility, Intact Financial is 1.53 times less risky than Newmont Goldcorp. It trades about 0.03 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,795 in Newmont Goldcorp Corp on September 13, 2024 and sell it today you would earn a total of 205.00 from holding Newmont Goldcorp Corp or generate 3.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intact Financial vs. Newmont Goldcorp Corp
Performance |
Timeline |
Intact Financial |
Newmont Goldcorp Corp |
Intact Financial and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intact Financial and Newmont Goldcorp
The main advantage of trading using opposite Intact Financial and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial 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.Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
Newmont Goldcorp vs. Arizona Sonoran Copper | Newmont Goldcorp vs. Marimaca Copper Corp | Newmont Goldcorp vs. World Copper | Newmont Goldcorp vs. QC Copper and |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |