Correlation Between Newcrest Mining and HighGold Mining
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and HighGold 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 HighGold 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 HighGold Mining, you can compare the effects of market volatilities on Newcrest Mining and HighGold 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 HighGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and HighGold Mining.
Diversification Opportunities for Newcrest Mining and HighGold Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newcrest and HighGold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and HighGold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HighGold Mining 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 HighGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HighGold Mining has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and HighGold Mining go up and down completely randomly.
Pair Corralation between Newcrest Mining and HighGold Mining
If you would invest 43.00 in HighGold Mining on August 30, 2024 and sell it today you would earn a total of 0.00 from holding HighGold Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newcrest Mining vs. HighGold Mining
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HighGold Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newcrest Mining and HighGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and HighGold Mining
The main advantage of trading using opposite Newcrest Mining and HighGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, HighGold 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 HighGold Mining will offset losses from the drop in HighGold Mining's long position.| Newcrest Mining vs. Big Ridge Gold | Newcrest Mining vs. Westhaven Gold Corp | Newcrest Mining vs. Satori Resources | Newcrest Mining vs. K92 Mining |
| HighGold Mining vs. ArcelorMittal SA ADR | HighGold Mining vs. Sanyo Special Steel | HighGold Mining vs. Kaltura | HighGold Mining vs. Grupo Simec SAB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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