Correlation Between Newmont and CSL
Can any of the company-specific risk be diversified away by investing in both Newmont and CSL 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 Newmont and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmont and CSL, you can compare the effects of market volatilities on Newmont and CSL 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 Newmont with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmont and CSL.
Diversification Opportunities for Newmont and CSL
Good diversification
The 3 months correlation between Newmont and CSL is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Newmont and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Newmont 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 Newmont are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Newmont i.e., Newmont and CSL go up and down completely randomly.
Pair Corralation between Newmont and CSL
Assuming the 90 days trading horizon Newmont is expected to generate 1.17 times more return on investment than CSL. However, Newmont is 1.17 times more volatile than CSL. It trades about 0.13 of its potential returns per unit of risk. CSL is currently generating about -0.12 per unit of risk. If you would invest 12,886 in Newmont on October 10, 2025 and sell it today you would earn a total of 2,964 from holding Newmont or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newmont vs. CSL
Performance |
| Timeline |
| Newmont |
| CSL |
Newmont and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmont and CSL
The main advantage of trading using opposite Newmont and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmont position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Newmont vs. Clime Investment Management | Newmont vs. Australian Dairy Nutritionals | Newmont vs. Air New Zealand | Newmont vs. Group 6 Metals |
| CSL vs. Abacus Storage King | CSL vs. Commonwealth Bank of | CSL vs. WT Financial Group | CSL vs. Retail Food Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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