Correlation Between Newmont Goldcorp and 79North

Can any of the company-specific risk be diversified away by investing in both Newmont Goldcorp and 79North 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 Goldcorp and 79North into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Newmont Goldcorp Corp and 79North, you can compare the effects of market volatilities on Newmont Goldcorp and 79North 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 Goldcorp with a short position of 79North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont Goldcorp and 79North.

Diversification Opportunities for Newmont Goldcorp and 79North

-0.85

Correlation Coefficient

Newmont Goldcorp  79North

Pay attention - limited upside

The 3 months correlation between Newmont and 79North is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Newmont Goldcorp Corp and 79North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 79North and Newmont Goldcorp 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 Goldcorp Corp are associated (or correlated) with 79North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 79North has no effect on the direction of Newmont Goldcorp i.e., Newmont Goldcorp and 79North go up and down completely randomly.

Pair Corralation between Newmont Goldcorp and 79North

Considering the 90-day investment horizon Newmont Goldcorp is expected to generate 196.48 times less return on investment than 79North. But when comparing it to its historical volatility, Newmont Goldcorp Corp is 47.59 times less risky than 79North. It trades about 0.03 of its potential returns per unit of risk. 79North is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.08  in 79North on September 5, 2024 and sell it today you would earn a total of  2.78  from holding 79North or generate 3475.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	74.4%
Values	Daily Returns

Newmont Goldcorp Corp  vs.  79North

Newmont Goldcorp Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Newmont Goldcorp Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

79North

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days 79North has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, 79North reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Newmont Goldcorp and 79North

The main advantage of trading using opposite Newmont Goldcorp and 79North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont Goldcorp position performs unexpectedly, 79North 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 79North will offset losses from the drop in 79North's long position.

The idea behind Newmont Goldcorp Corp and 79North 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.