Correlation Between Tianjin Capital and Newmont
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital 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 Tianjin Capital and Newmont into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and Newmont, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of Newmont. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Newmont.
Diversification Opportunities for Tianjin Capital and Newmont
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tianjin and Newmont is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont and Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Newmont go up and down completely randomly.
Pair Corralation between Tianjin Capital and Newmont
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 0.85 times more return on investment than Newmont. However, Tianjin Capital Environmental is 1.17 times less risky than Newmont. It trades about 0.18 of its potential returns per unit of risk. Newmont is currently generating about 0.0 per unit of risk. If you would invest 37.00 in Tianjin Capital Environmental on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Tianjin Capital Environmental or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Newmont
Performance |
| Timeline |
| Tianjin Capital Envi |
| Newmont |
Tianjin Capital and Newmont Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Newmont
The main advantage of trading using opposite Tianjin Capital and Newmont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. United Airlines Holdings | Tianjin Capital vs. ADRIATIC METALS LS 013355 | Tianjin Capital vs. Ultra Clean Holdings | Tianjin Capital vs. Kaiser Aluminum |
| Newmont vs. Franco Nevada | Newmont vs. Superior Plus Corp | Newmont vs. SIVERS SEMICONDUCTORS AB | Newmont vs. Norsk Hydro ASA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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