Correlation Between Goldcorp and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Goldcorp and Newmont Goldcorp 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 Goldcorp and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldcorp and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Goldcorp and Newmont Goldcorp 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 Goldcorp with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldcorp and Newmont Goldcorp.
Diversification Opportunities for Goldcorp and Newmont Goldcorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldcorp and Newmont is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldcorp and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp Corp and 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 Goldcorp are associated (or correlated) with Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Goldcorp i.e., Goldcorp and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Goldcorp and Newmont Goldcorp
If you would invest 3,392 in Newmont Goldcorp Corp on January 24, 2024 and sell it today you would earn a total of 354.00 from holding Newmont Goldcorp Corp or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Goldcorp vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Goldcorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Newmont Goldcorp Corp |
Goldcorp and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldcorp and Newmont Goldcorp
The main advantage of trading using opposite Goldcorp and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldcorp position performs unexpectedly, Newmont Goldcorp 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 Goldcorp will offset losses from the drop in Newmont Goldcorp's long position.| Goldcorp vs. NL Industries | Goldcorp vs. Alto Ingredients | Goldcorp vs. Neogen | Goldcorp vs. US Global Investors |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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