Correlation Between Mobileye Global and Newmont

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

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

Diversification Opportunities for Mobileye Global and Newmont

0.0

Correlation Coefficient

Mobileye Global  Newmont

Pay attention - limited upside

The 3 months correlation between Mobileye and Newmont is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont and Mobileye Global 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 Mobileye Global Class 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 Mobileye Global i.e., Mobileye Global and Newmont go up and down completely randomly.

Pair Corralation between Mobileye Global and Newmont

If you would invest  0.00  in Newmont on December 23, 2024 and sell it today you would earn a total of  0.00  from holding Newmont or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Mobileye Global Class  vs.  Newmont

Mobileye Global Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobileye Global Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Newmont

Risk-Adjusted Performance

Good

Over the last 90 days Newmont has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Newmont 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 Mobileye Global and Newmont

The main advantage of trading using opposite Mobileye Global and Newmont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global 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 Mobileye Global Class and Newmont 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.