Correlation Between New Gold and Sutter Gold
Can any of the company-specific risk be diversified away by investing in both New Gold and Sutter 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 New Gold and Sutter Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Gold and Sutter Gold Mining, you can compare the effects of market volatilities on New Gold and Sutter 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 New Gold with a short position of Sutter Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Gold and Sutter Gold.
Diversification Opportunities for New Gold and Sutter Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Sutter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Gold and Sutter Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutter Gold Mining and New Gold 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 New Gold are associated (or correlated) with Sutter Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutter Gold Mining has no effect on the direction of New Gold i.e., New Gold and Sutter Gold go up and down completely randomly.
Pair Corralation between New Gold and Sutter Gold
If you would invest 254.00 in New Gold on September 13, 2024 and sell it today you would earn a total of 33.00 from holding New Gold or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
New Gold vs. Sutter Gold Mining
Performance |
| Timeline |
| New Gold |
| Sutter Gold Mining |
New Gold and Sutter Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Gold and Sutter Gold
The main advantage of trading using opposite New Gold and Sutter Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Gold position performs unexpectedly, Sutter 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 Sutter Gold will offset losses from the drop in Sutter Gold's long position.| New Gold vs. Eldorado Gold Corp | New Gold vs. Kinross Gold | New Gold vs. Harmony Gold Mining | New Gold vs. Coeur Mining |
| Sutter Gold vs. New Gold | Sutter Gold vs. Eldorado Gold Corp | Sutter Gold vs. Kinross Gold | Sutter Gold vs. Harmony Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |