Correlation Between NEWMONT and EvoAir Holdings

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

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

Diversification Opportunities for NEWMONT and EvoAir Holdings

0.0

Correlation Coefficient

NEWMONT  EvoAir Holdings

Pay attention - limited upside

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

Pair Corralation between NEWMONT and EvoAir Holdings

If you would invest  2,300  in EvoAir Holdings on October 4, 2024 and sell it today you would earn a total of  0.00  from holding EvoAir Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.43%
Values	Daily Returns

NEWMONT MNG P  vs.  EvoAir Holdings

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 latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NEWMONT MNG P investors.

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.

Pair Trading with NEWMONT and EvoAir Holdings

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

The idea behind NEWMONT MNG P and EvoAir Holdings 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.