Correlation Between Electra Battery and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Electra Battery 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 Electra Battery and Newmont Goldcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electra Battery Materials and Newmont Goldcorp Corp, you can compare the effects of market volatilities on Electra Battery 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 Electra Battery with a short position of Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Battery and Newmont Goldcorp.
Diversification Opportunities for Electra Battery and Newmont Goldcorp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electra and Newmont is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials 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 Electra Battery 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 Electra Battery Materials 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 Electra Battery i.e., Electra Battery and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Electra Battery and Newmont Goldcorp
Given the investment horizon of 90 days Electra Battery Materials is expected to generate 1.1 times more return on investment than Newmont Goldcorp. However, Electra Battery is 1.1 times more volatile than Newmont Goldcorp Corp. It trades about 0.08 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about 0.09 per unit of risk. If you would invest 106.00 in Electra Battery Materials on March 9, 2025 and sell it today you would earn a total of 4.00 from holding Electra Battery Materials or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra Battery Materials vs. Newmont Goldcorp Corp
Performance |
| Timeline |
| Electra Battery Materials |
| Newmont Goldcorp Corp |
Electra Battery and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra Battery and Newmont Goldcorp
The main advantage of trading using opposite Electra Battery and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery 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.| Electra Battery vs. Cobalt Blue Holdings | Electra Battery vs. Bradda Head Lithium | Electra Battery vs. ioneer | Electra Battery vs. Tearlach Resources Limited |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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