Correlation Between Owens Corning and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Owens Corning 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 Owens Corning and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owens Corning and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Owens Corning 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 Owens Corning with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Corning and Newmont Goldcorp.
Diversification Opportunities for Owens Corning and Newmont Goldcorp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Owens and Newmont is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Owens Corning 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 Owens Corning 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 Owens Corning 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 Owens Corning i.e., Owens Corning and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Owens Corning and Newmont Goldcorp
Allowing for the 90-day total investment horizon Owens Corning is expected to generate 0.81 times more return on investment than Newmont Goldcorp. However, Owens Corning is 1.24 times less risky than Newmont Goldcorp. It trades about 0.38 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about -0.29 per unit of risk. If you would invest 18,505 in Owens Corning on August 28, 2024 and sell it today you would earn a total of 2,576 from holding Owens Corning or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Owens Corning vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Owens Corning |
| Newmont Goldcorp Corp |
Owens Corning and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owens Corning and Newmont Goldcorp
The main advantage of trading using opposite Owens Corning and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owens Corning 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.| Owens Corning vs. Trex Company | Owens Corning vs. Gibraltar Industries | Owens Corning vs. Travis Perkins PLC | Owens Corning vs. Janus International Group |
| Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Agnico Eagle Mines | Newmont Goldcorp vs. Kinross Gold | Newmont Goldcorp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |