Correlation Between Newcrest Mining and West Vault
Can any of the company-specific risk be diversified away by investing in both Newcrest Mining and West Vault 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 West Vault into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcrest Mining and West Vault Mining, you can compare the effects of market volatilities on Newcrest Mining and West Vault 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 West Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and West Vault.
Diversification Opportunities for Newcrest Mining and West Vault
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcrest and West is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Newcrest Mining and West Vault Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Vault 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 West Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Vault Mining has no effect on the direction of Newcrest Mining i.e., Newcrest Mining and West Vault go up and down completely randomly.
Pair Corralation between Newcrest Mining and West Vault
If you would invest 1,805 in Newcrest Mining on September 1, 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 | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Newcrest Mining vs. West Vault Mining
Performance |
| Timeline |
| Newcrest Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| West Vault Mining |
Newcrest Mining and West Vault Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcrest Mining and West Vault
The main advantage of trading using opposite Newcrest Mining and West Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcrest Mining position performs unexpectedly, West Vault 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 West Vault will offset losses from the drop in West Vault'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 |
| West Vault vs. Aurelius Minerals | West Vault vs. Quebec Precious Metals | West Vault vs. Omineca Mining and | West Vault vs. Altamira Gold 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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