Correlation Between Newmont Goldcorp and JNC Resources
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and JNC Resources 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 JNC Resources 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 JNC Resources, you can compare the effects of market volatilities on Newmont Goldcorp and JNC Resources 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 JNC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and JNC Resources.
Diversification Opportunities for Newmont Goldcorp and JNC Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newmont and JNC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and JNC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNC Resources 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 JNC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNC Resources has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and JNC Resources go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and JNC Resources
Considering the 90-day investment horizon Newmont Goldcorp Corp is expected to under-perform the JNC Resources. But the stock apears to be less risky and, when comparing its historical volatility, Newmont Goldcorp Corp is 22.62 times less risky than JNC Resources. The stock trades about -0.2 of its potential returns per unit of risk. The JNC Resources is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1.20 in JNC Resources on September 3, 2024 and sell it today you would earn a total of 1.30 from holding JNC Resources or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. JNC Resources
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| JNC Resources |
Newmont Goldcorp and JNC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and JNC Resources
The main advantage of trading using opposite Newmont Goldcorp and JNC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, JNC Resources 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 JNC Resources will offset losses from the drop in JNC Resources' 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 |
| JNC Resources vs. Argo Gold | JNC Resources vs. Advance Gold Corp | JNC Resources vs. Blue Star Gold | JNC Resources vs. Minnova 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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