Correlation Between EvoAir Holdings and NEWMONT

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

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

Diversification Opportunities for EvoAir Holdings and NEWMONT

0.0

Correlation Coefficient

EvoAir Holdings  NEWMONT

Pay attention - limited upside

The 3 months correlation between EvoAir and NEWMONT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings i.e., EvoAir Holdings and NEWMONT go up and down completely randomly.

Pair Corralation between EvoAir Holdings and NEWMONT

Assuming the 90 days horizon EvoAir Holdings is expected to generate 726.93 times less return on investment than NEWMONT. But when comparing it to its historical volatility, EvoAir Holdings is 431.99 times less risky than NEWMONT. It trades about 0.05 of its potential returns per unit of risk. NEWMONT MNG P is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  9,869  in NEWMONT MNG P on October 4, 2024 and sell it today you would lose (475.00) from holding NEWMONT MNG P or give up 4.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.28%
Values	Daily Returns

EvoAir Holdings  vs.  NEWMONT MNG P

EvoAir Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EvoAir Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, EvoAir Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with EvoAir Holdings and NEWMONT

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

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.