Correlation Between Newcrest Mining and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Minaurum 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 Minaurum 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 Minaurum Gold, you can compare the effects of market volatilities on Newcrest Mining and Minaurum 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Minaurum Gold.
Diversification Opportunities for Newcrest Mining and Minaurum Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and Minaurum is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Minaurum Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Minaurum Gold
If you would invest 1,805 in Newcrest Mining on August 29, 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 | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Newcrest Mining vs. Minaurum Gold
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Minaurum Gold |
Newcrest Mining and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Minaurum Gold
The main advantage of trading using opposite Newcrest Mining and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum 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 |
| Minaurum Gold vs. Aurion Resources | Minaurum Gold vs. Liberty Gold Corp | Minaurum Gold vs. Orezone Gold Corp | Minaurum Gold vs. Fortuna Silver Mines |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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