Correlation Between Newcrest Mining and G2 Goldfields
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and G2 Goldfields 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 G2 Goldfields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and G2 Goldfields, you can compare the effects of market volatilities on Newcrest Mining and G2 Goldfields 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 G2 Goldfields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and G2 Goldfields.
Diversification Opportunities for Newcrest Mining and G2 Goldfields
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newcrest and GUYGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and G2 Goldfields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2 Goldfields 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 G2 Goldfields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2 Goldfields has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and G2 Goldfields go up and down completely randomly.
Pair Corralation between Newcrest Mining and G2 Goldfields
If you would invest 161.00 in G2 Goldfields on November 28, 2024 and sell it today you would earn a total of 47.00 from holding G2 Goldfields or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newcrest Mining vs. G2 Goldfields
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| G2 Goldfields |
Newcrest Mining and G2 Goldfields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and G2 Goldfields
The main advantage of trading using opposite Newcrest Mining and G2 Goldfields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, G2 Goldfields 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 G2 Goldfields will offset losses from the drop in G2 Goldfields' long position.| Newcrest Mining vs. Big Ridge Gold | Newcrest Mining vs. Westhaven Gold Corp | Newcrest Mining vs. Satori Resources | Newcrest Mining vs. K92 Mining |
| G2 Goldfields vs. Marvel Gold Limited | G2 Goldfields vs. GGX Gold Corp | G2 Goldfields vs. Hummingbird Resources PLC | G2 Goldfields vs. Angkor Resources 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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