Correlation Between Newcrest Mining and Roscan Gold
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and Roscan 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 Roscan 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 Roscan Gold Corp, you can compare the effects of market volatilities on Newcrest Mining and Roscan 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 Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Roscan Gold.
Diversification Opportunities for Newcrest Mining and Roscan Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and Roscan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan 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 Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and Roscan Gold go up and down completely randomly.
Pair Corralation between Newcrest Mining and Roscan 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 | 4.35% |
| Values | Daily Returns |
Newcrest Mining vs. Roscan Gold Corp
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Roscan Gold Corp |
Newcrest Mining and Roscan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and Roscan Gold
The main advantage of trading using opposite Newcrest Mining and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, Roscan 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 Roscan Gold will offset losses from the drop in Roscan 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 |
| Roscan Gold vs. Vertiv Holdings Co | Roscan Gold vs. Nasdaq Inc | Roscan Gold vs. McDonalds | Roscan 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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