Correlation Between Newcrest Mining and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Bluestone Resources 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 Bluestone Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and Bluestone Resources, you can compare the effects of market volatilities on Newcrest Mining and Bluestone Resources 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 Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Bluestone Resources.
Diversification Opportunities for Newcrest Mining and Bluestone Resources
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Newcrest and Bluestone is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources 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 Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Bluestone Resources go up and down completely randomly.
Pair Corralation between Newcrest Mining and Bluestone Resources
If you would invest 22.00 in Bluestone Resources on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Bluestone Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Newcrest Mining vs. Bluestone Resources
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bluestone Resources |
Newcrest Mining and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Bluestone Resources
The main advantage of trading using opposite Newcrest Mining and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' 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 |
| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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