Correlation Between Newmont Goldcorp and Firefinch
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Firefinch 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 Firefinch 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 Firefinch Limited, you can compare the effects of market volatilities on Newmont Goldcorp and Firefinch 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 Firefinch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Firefinch.
Diversification Opportunities for Newmont Goldcorp and Firefinch
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newmont and Firefinch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Firefinch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firefinch Limited 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 Firefinch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firefinch Limited has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Firefinch go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Firefinch
If you would invest 4,836 in Newmont Goldcorp Corp on November 27, 2024 and sell it today you would lose (303.00) from holding Newmont Goldcorp Corp or give up 6.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Firefinch Limited
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Firefinch Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Newmont Goldcorp and Firefinch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Firefinch
The main advantage of trading using opposite Newmont Goldcorp and Firefinch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Firefinch 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 Firefinch will offset losses from the drop in Firefinch'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 |
| Firefinch vs. Newmont Goldcorp Corp | Firefinch vs. Pan American Silver | Firefinch vs. Agnico Eagle Mines | Firefinch vs. Kinross 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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