Correlation Between Newcrest Mining and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Augusta 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 Augusta 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 Augusta Gold Corp, you can compare the effects of market volatilities on Newcrest Mining and Augusta 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 Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Augusta Gold.
Diversification Opportunities for Newcrest Mining and Augusta Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and Augusta is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Augusta Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augusta Gold Corp 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 Augusta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augusta Gold Corp has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Augusta Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Augusta Gold
Assuming the 90 days horizon Newcrest Mining is expected to generate 0.48 times more return on investment than Augusta Gold. However, Newcrest Mining is 2.07 times less risky than Augusta Gold. It trades about 0.08 of its potential returns per unit of risk. Augusta Gold Corp is currently generating about 0.0 per unit of risk. If you would invest 1,393 in Newcrest Mining on August 29, 2024 and sell it today you would earn a total of 407.00 from holding Newcrest Mining or generate 29.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.45% |
| Values | Daily Returns |
Newcrest Mining vs. Augusta Gold Corp
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Augusta Gold Corp |
Newcrest Mining and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Augusta Gold
The main advantage of trading using opposite Newcrest Mining and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Augusta 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 Augusta Gold will offset losses from the drop in Augusta 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 |
| Augusta Gold vs. Vertiv Holdings Co | Augusta Gold vs. Nasdaq Inc | Augusta Gold vs. McDonalds | Augusta 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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