Correlation Between Chemours and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Chemours 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 Chemours and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Newmont Goldcorp.
Diversification Opportunities for Chemours and Newmont Goldcorp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chemours and Newmont is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co 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 Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Chemours and Newmont Goldcorp
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 1.89 times more return on investment than Newmont Goldcorp. However, Chemours is 1.89 times more volatile than Newmont Goldcorp Corp. It trades about 0.09 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.14 per unit of risk. If you would invest 950.00 in Chemours Co on March 9, 2025 and sell it today you would earn a total of 162.00 from holding Chemours Co or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Chemours |
| Newmont Goldcorp Corp |
Chemours and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Newmont Goldcorp
The main advantage of trading using opposite Chemours and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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