Correlation Between NEWMONT and Hurco Companies
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By analyzing existing cross correlation between NEWMONT MNG P and Hurco Companies, you can compare the effects of market volatilities on NEWMONT and Hurco Companies 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 NEWMONT with a short position of Hurco Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWMONT and Hurco Companies.
Diversification Opportunities for NEWMONT and Hurco Companies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEWMONT and Hurco is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding NEWMONT MNG P and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies and NEWMONT 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 NEWMONT MNG P are associated (or correlated) with Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of NEWMONT i.e., NEWMONT and Hurco Companies go up and down completely randomly.
Pair Corralation between NEWMONT and Hurco Companies
Assuming the 90 days trading horizon NEWMONT is expected to generate 20.16 times less return on investment than Hurco Companies. But when comparing it to its historical volatility, NEWMONT MNG P is 3.27 times less risky than Hurco Companies. It trades about 0.01 of its potential returns per unit of risk. Hurco Companies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,010 in Hurco Companies on September 4, 2024 and sell it today you would earn a total of 275.00 from holding Hurco Companies or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.02% |
| Values | Daily Returns |
NEWMONT MNG P vs. Hurco Companies
Performance |
| Timeline |
| NEWMONT MNG P |
| Hurco Companies |
NEWMONT and Hurco Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWMONT and Hurco Companies
The main advantage of trading using opposite NEWMONT and Hurco Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWMONT position performs unexpectedly, Hurco Companies 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 Hurco Companies will offset losses from the drop in Hurco Companies' long position.The idea behind NEWMONT MNG P and Hurco Companies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hurco Companies vs. JE Cleantech Holdings | Hurco Companies vs. Laser Photonics | Hurco Companies vs. Siemens AG Class | Hurco Companies vs. ATVRockN |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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