Correlation Between NYSE Composite and NEWMONT
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By analyzing existing cross correlation between NYSE Composite and NEWMONT MNG P, you can compare the effects of market volatilities on NYSE Composite and NEWMONT 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 NEWMONT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and NEWMONT.
Diversification Opportunities for NYSE Composite and NEWMONT
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and NEWMONT is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and NEWMONT MNG P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT MNG P 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 NEWMONT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWMONT MNG P has no effect on the direction of NYSE Composite i.e., NYSE Composite and NEWMONT go up and down completely randomly.
Pair Corralation between NYSE Composite and NEWMONT
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.41 times more return on investment than NEWMONT. However, NYSE Composite is 2.45 times less risky than NEWMONT. It trades about 0.21 of its potential returns per unit of risk. NEWMONT MNG P is currently generating about -0.13 per unit of risk. If you would invest 1,911,944 in NYSE Composite on October 21, 2024 and sell it today you would earn a total of 48,793 from holding NYSE Composite or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
NYSE Composite vs. NEWMONT MNG P
Performance |
| Timeline |
NYSE Composite and NEWMONT Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
NEWMONT MNG P
Pair trading matchups for NEWMONT
Pair Trading with NYSE Composite and NEWMONT
The main advantage of trading using opposite NYSE Composite and NEWMONT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, NEWMONT 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 will offset losses from the drop in NEWMONT's long position.| NYSE Composite vs. National Health Investors | NYSE Composite vs. Arbor Realty Trust | NYSE Composite vs. Canaf Investments | NYSE Composite vs. Freedom Holding Corp |
| NEWMONT vs. AEP TEX INC | NEWMONT vs. US BANK NATIONAL | NEWMONT vs. Shoals Technologies Group | NEWMONT vs. Vertiv Holdings Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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