Correlation Between Newmont Goldcorp and Sixty North
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Sixty North 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 Sixty North 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 Sixty North Gold, you can compare the effects of market volatilities on Newmont Goldcorp and Sixty North 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 Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Sixty North.
Diversification Opportunities for Newmont Goldcorp and Sixty North
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newmont and Sixty is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold 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 Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Sixty North go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Sixty North
Considering the 90-day investment horizon Newmont Goldcorp is expected to generate 16913.5 times less return on investment than Sixty North. But when comparing it to its historical volatility, Newmont Goldcorp Corp is 14.12 times less risky than Sixty North. It trades about 0.0 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Sixty North Gold on October 13, 2024 and sell it today you would lose (4.00) from holding Sixty North Gold or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.62% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Sixty North Gold
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Sixty North Gold |
Newmont Goldcorp and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Sixty North
The main advantage of trading using opposite Newmont Goldcorp and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North'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 |
| Sixty North vs. Newmont Goldcorp Corp | Sixty North vs. Zijin Mining Group | Sixty North vs. Agnico Eagle Mines | Sixty North 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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