Correlation Between Euro Sun and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Euro Sun 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 Euro Sun and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Sun Mining and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Euro Sun 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 Euro Sun with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Sun and Newmont Goldcorp.
Diversification Opportunities for Euro Sun and Newmont Goldcorp
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Euro and Newmont is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Euro Sun Mining 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 Euro Sun 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 Euro Sun Mining 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 Euro Sun i.e., Euro Sun and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Euro Sun and Newmont Goldcorp
Assuming the 90 days horizon Euro Sun Mining is expected to generate 3.76 times more return on investment than Newmont Goldcorp. However, Euro Sun is 3.76 times more volatile than Newmont Goldcorp Corp. It trades about 0.24 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.31 per unit of risk. If you would invest 3.30 in Euro Sun Mining on January 17, 2024 and sell it today you would earn a total of 1.16 from holding Euro Sun Mining or generate 35.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Euro Sun Mining vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Euro Sun Mining |
| Newmont Goldcorp Corp |
Euro Sun and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Sun and Newmont Goldcorp
The main advantage of trading using opposite Euro Sun and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Sun 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.| Euro Sun vs. Royce Opportunity Fund | Euro Sun vs. Oxford Biomedica plc | Euro Sun vs. HP Inc | Euro Sun vs. Forte Biosciences |
| Newmont Goldcorp vs. China Hongqiao Group | Newmont Goldcorp vs. Norsk Hydro ASA | Newmont Goldcorp vs. Aquagold International | Newmont Goldcorp vs. Thrivent High Yield |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings 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 | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |