Correlation Between Cortus Metals and NEWMONT

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

By analyzing existing cross correlation between Cortus Metals and NEWMONT MNG P, you can compare the effects of market volatilities on Cortus Metals 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 Cortus Metals with a short position of NEWMONT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cortus Metals and NEWMONT.

Diversification Opportunities for Cortus Metals and NEWMONT

0.0

Correlation Coefficient

Cortus Metals  NEWMONT

Pay attention - limited upside

The 3 months correlation between Cortus and NEWMONT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cortus Metals and NEWMONT MNG P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT MNG P and Cortus Metals 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 Cortus Metals 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 MNG P has no effect on the direction of Cortus Metals i.e., Cortus Metals and NEWMONT go up and down completely randomly.

Pair Corralation between Cortus Metals and NEWMONT

If you would invest  9,316  in NEWMONT MNG P on October 7, 2024 and sell it today you would earn a total of  78.00  from holding NEWMONT MNG P or generate 0.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	82.93%
Values	Daily Returns

Cortus Metals  vs.  NEWMONT MNG P

Cortus Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cortus Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cortus Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NEWMONT MNG P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NEWMONT MNG P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NEWMONT is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cortus Metals and NEWMONT

The main advantage of trading using opposite Cortus Metals and NEWMONT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cortus Metals 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.

The idea behind Cortus Metals and NEWMONT MNG P 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.