Correlation Between Newmont Goldcorp and Damara Gold
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Damara 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 Damara 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 Damara Gold Corp, you can compare the effects of market volatilities on Newmont Goldcorp and Damara 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 Damara Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Damara Gold.
Diversification Opportunities for Newmont Goldcorp and Damara Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newmont and Damara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Damara Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damara 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 Damara Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damara Gold Corp has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Damara Gold go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Damara Gold
If you would invest 4,157 in Newmont Goldcorp Corp on November 28, 2024 and sell it today you would earn a total of 201.00 from holding Newmont Goldcorp Corp or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Damara Gold Corp
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Damara Gold Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Newmont Goldcorp and Damara Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Damara Gold
The main advantage of trading using opposite Newmont Goldcorp and Damara Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Damara 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 Damara Gold will offset losses from the drop in Damara 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 |
| Damara Gold vs. Sirios Resources | Damara Gold vs. Tristar Gold | Damara Gold vs. Galleon Gold Corp | Damara Gold vs. Altamira 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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