Correlation Between Newmont Goldcorp and Gold Springs
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Gold Springs 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 Gold Springs 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 Gold Springs Resource, you can compare the effects of market volatilities on Newmont Goldcorp and Gold Springs 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 Gold Springs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Gold Springs.
Diversification Opportunities for Newmont Goldcorp and Gold Springs
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newmont and Gold is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Gold Springs Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Springs Resource 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 Gold Springs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Springs Resource has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Gold Springs go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Gold Springs
Considering the 90-day investment horizon Newmont Goldcorp Corp is expected to generate 0.31 times more return on investment than Gold Springs. However, Newmont Goldcorp Corp is 3.26 times less risky than Gold Springs. It trades about -0.03 of its potential returns per unit of risk. Gold Springs Resource is currently generating about -0.09 per unit of risk. If you would invest 4,499 in Newmont Goldcorp Corp on November 1, 2024 and sell it today you would lose (190.00) from holding Newmont Goldcorp Corp or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Gold Springs Resource
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Gold Springs Resource |
Newmont Goldcorp and Gold Springs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Gold Springs
The main advantage of trading using opposite Newmont Goldcorp and Gold Springs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Gold Springs 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 Gold Springs will offset losses from the drop in Gold Springs' 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 |
| Gold Springs vs. Almadex Minerals | Gold Springs vs. Revival Gold | Gold Springs vs. Galiano Gold | Gold Springs vs. US 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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