Correlation Between NYSE Composite and Newcrest Mining
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Newcrest 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 NYSE Composite and Newcrest Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Newcrest Mining, you can compare the effects of market volatilities on NYSE Composite and Newcrest 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 NYSE Composite with a short position of Newcrest Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Newcrest Mining.
Diversification Opportunities for NYSE Composite and Newcrest Mining
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Newcrest is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Newcrest Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcrest Mining and NYSE Composite 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 NYSE Composite are associated (or correlated) with Newcrest Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcrest Mining has no effect on the direction of NYSE Composite i.e., NYSE Composite and Newcrest Mining go up and down completely randomly.
Pair Corralation between NYSE Composite and Newcrest Mining
If you would invest 1,766,949 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 260,255 from holding NYSE Composite or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
NYSE Composite vs. Newcrest Mining
Performance |
| Timeline |
NYSE Composite and Newcrest Mining Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Newcrest Mining
Pair trading matchups for Newcrest Mining
Pair Trading with NYSE Composite and Newcrest Mining
The main advantage of trading using opposite NYSE Composite and Newcrest Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Newcrest 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 Newcrest Mining will offset losses from the drop in Newcrest Mining's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Newcrest Mining vs. Wesdome Gold Mines | Newcrest Mining vs. Gold Reserve | Newcrest Mining vs. Osisko Gold Ro | Newcrest Mining vs. I 80 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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