Correlation Between Newcrest Mining and Makara Mining
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Makara Mining 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 Makara Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and Makara Mining Corp, you can compare the effects of market volatilities on Newcrest Mining and Makara Mining 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 Makara Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Makara Mining.
Diversification Opportunities for Newcrest Mining and Makara Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newcrest and Makara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Makara Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makara Mining 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 Makara Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makara Mining Corp has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Makara Mining go up and down completely randomly.
Pair Corralation between Newcrest Mining and Makara Mining
If you would invest 11.00 in Makara Mining Corp on December 4, 2024 and sell it today you would lose (3.30) from holding Makara Mining Corp or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newcrest Mining vs. Makara Mining Corp
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Makara Mining Corp |
Newcrest Mining and Makara Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Makara Mining
The main advantage of trading using opposite Newcrest Mining and Makara Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Makara Mining 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 Makara Mining will offset losses from the drop in Makara Mining'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 |
| Makara Mining vs. Endurance Gold | Makara Mining vs. Sixty North Gold | Makara Mining vs. St James Gold | Makara Mining vs. Liberty Gold 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |