Correlation Between Quanex Building and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Quanex Building and Newmont Goldcorp 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 Quanex Building and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanex Building Products and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Quanex Building and Newmont Goldcorp 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 Quanex Building with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanex Building and Newmont Goldcorp.
Diversification Opportunities for Quanex Building and Newmont Goldcorp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quanex and Newmont is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp Corp and Quanex Building 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 Quanex Building Products are associated (or correlated) with Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Quanex Building i.e., Quanex Building and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Quanex Building and Newmont Goldcorp
Allowing for the 90-day total investment horizon Quanex Building is expected to generate 1.29 times less return on investment than Newmont Goldcorp. In addition to that, Quanex Building is 1.15 times more volatile than Newmont Goldcorp Corp. It trades about 0.02 of its total potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.03 per unit of volatility. If you would invest 3,943 in Newmont Goldcorp Corp on August 24, 2024 and sell it today you would earn a total of 380.00 from holding Newmont Goldcorp Corp or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanex Building Products vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Quanex Building Products |
| Newmont Goldcorp Corp |
Quanex Building and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanex Building and Newmont Goldcorp
The main advantage of trading using opposite Quanex Building and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanex Building position performs unexpectedly, Newmont Goldcorp 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 Newmont Goldcorp will offset losses from the drop in Newmont Goldcorp's long position.| Quanex Building vs. Gibraltar Industries | Quanex Building vs. Carpenter Technology | Quanex Building vs. Myers Industries | Quanex Building vs. Griffon |
| Newmont Goldcorp vs. Gold Fields Ltd | Newmont Goldcorp vs. Barrick Gold Corp | Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Franco Nevada |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |