Correlation Between Newcrest Mining and Sixty North

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

By analyzing existing cross correlation between Newcrest Mining and Sixty North Gold, you can compare the effects of market volatilities on Newcrest Mining and Sixty North 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 Newcrest Mining with a short position of Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcrest Mining and Sixty North.

Diversification Opportunities for Newcrest Mining and Sixty North

0.0

Correlation Coefficient

Newcrest Mining  Sixty North

Pay attention - limited upside

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

Pair Corralation between Newcrest Mining and Sixty North

If you would invest  4.60  in Sixty North Gold on December 29, 2024 and sell it today you would earn a total of  4.20  from holding Sixty North Gold or generate 91.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Newcrest Mining  vs.  Sixty North Gold

Newcrest Mining

Risk-Adjusted Performance

Very Weak

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

Sixty North Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sixty North Gold are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sixty North reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Newcrest Mining and Sixty North

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

The idea behind Newcrest Mining and Sixty North Gold 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.