Correlation Between Newmont Corp and 70GD

Can any of the company-specific risk be diversified away by investing in both Newmont Corp and 70GD 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 Newmont Corp and 70GD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Newmont Corp and 70GD, you can compare the effects of market volatilities on Newmont Corp and 70GD 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 Corp with a short position of 70GD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Corp and 70GD.

Diversification Opportunities for Newmont Corp and 70GD

0.0

Correlation Coefficient

Newmont Corp  70GD

Pay attention - limited upside

The 3 months correlation between Newmont and 70GD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Corp and 70GD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 70GD and Newmont Corp 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 Corp are associated (or correlated) with 70GD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 70GD has no effect on the direction of Newmont Corp i.e., Newmont Corp and 70GD go up and down completely randomly.

Pair Corralation between Newmont Corp and 70GD

If you would invest  3,797  in Newmont Corp on December 22, 2024 and sell it today you would earn a total of  936.00  from holding Newmont Corp or generate 24.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Newmont Corp  vs.  70GD

Newmont Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Newmont Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Newmont Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

70GD

Risk-Adjusted Performance

Very Weak

Over the last 90 days 70GD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, 70GD is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Newmont Corp and 70GD

The main advantage of trading using opposite Newmont Corp and 70GD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Corp position performs unexpectedly, 70GD 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 70GD will offset losses from the drop in 70GD's long position.

The idea behind Newmont Corp and 70GD 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.