Correlation Between Newcrest Mining and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Artemis 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 Artemis 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 Artemis Gold, you can compare the effects of market volatilities on Newcrest Mining and Artemis 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 Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Artemis Gold.
Diversification Opportunities for Newcrest Mining and Artemis Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and Artemis is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold 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 Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Artemis Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Artemis Gold
If you would invest 1,006 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Artemis Gold or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Newcrest Mining vs. Artemis Gold
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Artemis Gold |
Newcrest Mining and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Artemis Gold
The main advantage of trading using opposite Newcrest Mining and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Artemis 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 Artemis Gold will offset losses from the drop in Artemis 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 |
| Artemis Gold vs. Aurion Resources | Artemis Gold vs. Rio2 Limited | Artemis Gold vs. Palamina Corp | Artemis Gold vs. BTU Metals Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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