Correlation Between Newmont Goldcorp and 1911 Gold
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and 1911 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 Newmont Goldcorp and 1911 Gold 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 1911 Gold Corp, you can compare the effects of market volatilities on Newmont Goldcorp and 1911 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 Newmont Goldcorp with a short position of 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and 1911 Gold.
Diversification Opportunities for Newmont Goldcorp and 1911 Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Newmont and 1911 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp 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 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and 1911 Gold go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and 1911 Gold
Considering the 90-day investment horizon Newmont Goldcorp Corp is expected to under-perform the 1911 Gold. But the stock apears to be less risky and, when comparing its historical volatility, Newmont Goldcorp Corp is 4.65 times less risky than 1911 Gold. The stock trades about -0.25 of its potential returns per unit of risk. The 1911 Gold Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 12.00 in 1911 Gold Corp on October 9, 2024 and sell it today you would lose (1.00) from holding 1911 Gold Corp or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. 1911 Gold Corp
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| 1911 Gold Corp |
Newmont Goldcorp and 1911 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and 1911 Gold
The main advantage of trading using opposite Newmont Goldcorp and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, 1911 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 1911 Gold will offset losses from the drop in 1911 Gold'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 |
| 1911 Gold vs. Newmont Goldcorp Corp | 1911 Gold vs. Zijin Mining Group | 1911 Gold vs. Agnico Eagle Mines | 1911 Gold vs. Barrick 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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