Correlation Between Newcrest Mining and Japan Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Japan Gold 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 Japan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and Japan Gold Corp, you can compare the effects of market volatilities on Newcrest Mining and Japan Gold 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 Japan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Japan Gold.
Diversification Opportunities for Newcrest Mining and Japan Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and Japan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Japan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Gold 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 Japan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Gold Corp has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Japan Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Japan Gold
If you would invest 7.20 in Japan Gold Corp on August 29, 2024 and sell it today you would lose (1.85) from holding Japan Gold Corp or give up 25.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.32% |
| Values | Daily Returns |
Newcrest Mining vs. Japan Gold Corp
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Japan Gold Corp |
Newcrest Mining and Japan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Japan Gold
The main advantage of trading using opposite Newcrest Mining and Japan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Japan Gold 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 Japan Gold will offset losses from the drop in Japan Gold'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 |
| Japan Gold vs. Vertiv Holdings Co | Japan Gold vs. Nasdaq Inc | Japan Gold vs. McDonalds | Japan Gold vs. Walmart |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |