Correlation Between Newmont Goldcorp and Dore Copper
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Dore Copper 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 Dore Copper 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 Dore Copper Mining, you can compare the effects of market volatilities on Newmont Goldcorp and Dore Copper 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 Dore Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Dore Copper.
Diversification Opportunities for Newmont Goldcorp and Dore Copper
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newmont and Dore is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Dore Copper Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dore Copper Mining 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 Dore Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dore Copper Mining has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Dore Copper go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Dore Copper
Assuming the 90 days trading horizon Newmont Goldcorp Corp is expected to under-perform the Dore Copper. But the stock apears to be less risky and, when comparing its historical volatility, Newmont Goldcorp Corp is 2.58 times less risky than Dore Copper. The stock trades about -0.14 of its potential returns per unit of risk. The Dore Copper Mining is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Dore Copper Mining on October 7, 2024 and sell it today you would earn a total of 2.00 from holding Dore Copper Mining or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Dore Copper Mining
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Dore Copper Mining |
Newmont Goldcorp and Dore Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Dore Copper
The main advantage of trading using opposite Newmont Goldcorp and Dore Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Dore Copper 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 Dore Copper will offset losses from the drop in Dore Copper's long position.| Newmont Goldcorp vs. Wheaton Precious Metals | Newmont Goldcorp vs. Agnico Eagle Mines | Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Franco Nevada |
| Dore Copper vs. Mundoro Capital | Dore Copper vs. BMO Aggregate Bond | Dore Copper vs. iShares Canadian HYBrid | Dore Copper vs. Brompton European Dividend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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