Correlation Between Newcrest Mining and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Antilles Gold 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 Newcrest Mining and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and Antilles Gold Limited, you can compare the effects of market volatilities on Newcrest Mining and Antilles Gold 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 Newcrest Mining with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Antilles Gold.
Diversification Opportunities for Newcrest Mining and Antilles Gold
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newcrest and Antilles is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Newcrest Mining 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 Newcrest Mining are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Antilles Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Antilles Gold
If you would invest 0.22 in Antilles Gold Limited on August 29, 2024 and sell it today you would earn a total of 0.38 from holding Antilles Gold Limited or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Newcrest Mining vs. Antilles Gold Limited
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Antilles Gold Limited |
Newcrest Mining and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Antilles Gold
The main advantage of trading using opposite Newcrest Mining and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Newcrest Mining vs. Wesdome Gold Mines | Newcrest Mining vs. Gold Reserve | Newcrest Mining vs. Osisko Gold Ro | Newcrest Mining vs. I 80 Gold Corp |
| Antilles Gold vs. Vertiv Holdings Co | Antilles Gold vs. Nasdaq Inc | Antilles Gold vs. McDonalds | Antilles Gold vs. Walmart |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |