Correlation Between Newmont Goldcorp and Metalero Mining
Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and Metalero Mining 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 Metalero Mining 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 Metalero Mining Corp, you can compare the effects of market volatilities on Newmont Goldcorp and Metalero Mining 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 Metalero Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and Metalero Mining.
Diversification Opportunities for Newmont Goldcorp and Metalero Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Newmont and Metalero is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and Metalero Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalero Mining 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 Metalero Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalero Mining Corp has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and Metalero Mining go up and down completely randomly.
Pair Corralation between Newmont Goldcorp and Metalero Mining
Assuming the 90 days trading horizon Newmont Goldcorp Corp is expected to generate 0.65 times more return on investment than Metalero Mining. However, Newmont Goldcorp Corp is 1.53 times less risky than Metalero Mining. It trades about 0.34 of its potential returns per unit of risk. Metalero Mining Corp is currently generating about 0.01 per unit of risk. If you would invest 5,455 in Newmont Goldcorp Corp on October 26, 2024 and sell it today you would earn a total of 573.00 from holding Newmont Goldcorp Corp or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Newmont Goldcorp Corp vs. Metalero Mining Corp
Performance |
| Timeline |
| Newmont Goldcorp Corp |
| Metalero Mining Corp |
Newmont Goldcorp and Metalero Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont Goldcorp and Metalero Mining
The main advantage of trading using opposite Newmont Goldcorp and Metalero Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, Metalero Mining 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 Metalero Mining will offset losses from the drop in Metalero Mining'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 |
| Metalero Mining vs. Newmont Goldcorp Corp | Metalero Mining vs. Agnico Eagle Mines | Metalero Mining vs. Barrick Gold Corp | Metalero Mining vs. Wheaton Precious Metals |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |