
A Correlation Study of Mining Stocks in September 2017
Sep. 13 2017, Updated 9:07 a.m. ET
Miners’ correlations with gold
Correlation trends
Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD (year-to-date) basis, while Sibanye Gold has the lowest correlation to gold.
Sibanye Gold, Gold Fields, and Primero Mining have seen upward scaling correlations to gold over the past three years. Franco-Nevada has seen a mixed correlation to gold.
Gold Fields saw its three-year correlation rise from 0.77 to a one-year correlation of 0.80. A correlation of 0.80 suggests that about 80.0% of the time, Gold Fields has moved in the same direction as gold.
A correlation study of miners is crucial since the movement of the stocks can be studied by way of fluctuations in precious metals.