Correlation Between Sibanye Stillwater and Newmont
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater and Newmont 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 Sibanye Stillwater and Newmont into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater Limited and Newmont, you can compare the effects of market volatilities on Sibanye Stillwater 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 Sibanye Stillwater with a short position of Newmont. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and Newmont.
Diversification Opportunities for Sibanye Stillwater and Newmont
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sibanye and Newmont is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater Limited and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont and Sibanye Stillwater 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 Sibanye Stillwater Limited 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 has no effect on the direction of Sibanye Stillwater i.e., Sibanye Stillwater and Newmont go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and Newmont
If you would invest (100.00) in Newmont on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Newmont or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sibanye Stillwater Limited vs. Newmont
Performance |
| Timeline |
| Sibanye Stillwater |
| Newmont |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sibanye Stillwater and Newmont Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and Newmont
The main advantage of trading using opposite Sibanye Stillwater and Newmont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater 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.| Sibanye Stillwater vs. Extra Space Storage | Sibanye Stillwater vs. Paycom Software | Sibanye Stillwater vs. Tres Tentos Agroindustrial | Sibanye Stillwater vs. Take Two Interactive Software |
| Newmont vs. Paycom Software | Newmont vs. Lupatech SA | Newmont vs. Agilent Technologies | Newmont vs. Raytheon Technologies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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