Correlation Between HudBay Minerals and New Gold
Can any of the company-specific risk be diversified away by investing in both HudBay Minerals and New Gold 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 HudBay Minerals and New Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HudBay Minerals and New Gold, you can compare the effects of market volatilities on HudBay Minerals and New Gold 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 HudBay Minerals with a short position of New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HudBay Minerals and New Gold.
Diversification Opportunities for HudBay Minerals and New Gold
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HudBay and New is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding HudBay Minerals and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold and HudBay Minerals 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 HudBay Minerals are associated (or correlated) with New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of HudBay Minerals i.e., HudBay Minerals and New Gold go up and down completely randomly.
Pair Corralation between HudBay Minerals and New Gold
Assuming the 90 days trading horizon HudBay Minerals is expected to generate 0.87 times more return on investment than New Gold. However, HudBay Minerals is 1.15 times less risky than New Gold. It trades about 0.25 of its potential returns per unit of risk. New Gold is currently generating about 0.2 per unit of risk. If you would invest 1,520 in HudBay Minerals on August 14, 2025 and sell it today you would earn a total of 808.00 from holding HudBay Minerals or generate 53.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HudBay Minerals vs. New Gold
Performance |
| Timeline |
| HudBay Minerals |
| New Gold |
HudBay Minerals and New Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HudBay Minerals and New Gold
The main advantage of trading using opposite HudBay Minerals and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HudBay Minerals position performs unexpectedly, New Gold 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 New Gold will offset losses from the drop in New Gold's long position.| HudBay Minerals vs. Capstone Mining Corp | HudBay Minerals vs. China Gold International | HudBay Minerals vs. New Gold | HudBay Minerals vs. IAMGold |
| New Gold vs. B2Gold Corp | New Gold vs. OceanaGold | New Gold vs. Artemis Gold | New Gold vs. Eldorado Gold Corp |
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 Positions Ratings module to 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.
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