Correlation Between Newcrest Mining and I 80
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and I 80 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 I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and I 80 Gold Corp, you can compare the effects of market volatilities on Newcrest Mining and I 80 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 I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and I 80.
Diversification Opportunities for Newcrest Mining and I 80
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newcrest and IAUX is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 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 I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and I 80 go up and down completely randomly.
Pair Corralation between Newcrest Mining and I 80
If you would invest 1,800 in Newcrest Mining on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Newcrest Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Newcrest Mining vs. I 80 Gold Corp
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| I 80 Gold |
Newcrest Mining and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and I 80
The main advantage of trading using opposite Newcrest Mining and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80'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 |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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