Correlation Between Newmont Goldcorp and Themes Silver
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Themes Silver 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 Newmont Goldcorp and Themes Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont Goldcorp Corp and Themes Silver Miners, you can compare the effects of market volatilities on Newmont Goldcorp and Themes Silver 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 Newmont Goldcorp with a short position of Themes Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Themes Silver.
Diversification Opportunities for Newmont Goldcorp and Themes Silver
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Newmont and Themes is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Themes Silver Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Silver Miners and Newmont Goldcorp 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 Newmont Goldcorp Corp are associated (or correlated) with Themes Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Silver Miners has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Themes Silver go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Themes Silver
Considering the 90-day investment horizon Newmont Goldcorp Corp is expected to generate 0.96 times more return on investment than Themes Silver. However, Newmont Goldcorp Corp is 1.04 times less risky than Themes Silver. It trades about 0.09 of its potential returns per unit of risk. Themes Silver Miners is currently generating about 0.04 per unit of risk. If you would invest 3,067 in Newmont Goldcorp Corp on August 27, 2024 and sell it today you would earn a total of 1,271 from holding Newmont Goldcorp Corp or generate 41.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.06% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Themes Silver Miners
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Themes Silver Miners |
Newmont Goldcorp and Themes Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Themes Silver
The main advantage of trading using opposite Newmont Goldcorp and Themes Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Themes Silver 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 Themes Silver will offset losses from the drop in Themes Silver's long position.| Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Agnico Eagle Mines | Newmont Goldcorp vs. Kinross Gold | Newmont Goldcorp vs. Wheaton Precious Metals |
| Themes Silver vs. iShares Silver Trust | Themes Silver vs. SPDR Gold Shares | Themes Silver vs. Newmont Goldcorp Corp | Themes Silver vs. Direxion Daily Gold |
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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