Correlation Between New Residential and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both New Residential and MAGNUM MINING 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 New Residential and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and MAGNUM MINING EXP, you can compare the effects of market volatilities on New Residential and MAGNUM MINING 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 New Residential with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and MAGNUM MINING.
Diversification Opportunities for New Residential and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP and New Residential 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 New Residential Investment are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of New Residential i.e., New Residential and MAGNUM MINING go up and down completely randomly.
Pair Corralation between New Residential and MAGNUM MINING
If you would invest 965.00 in New Residential Investment on August 28, 2024 and sell it today you would earn a total of 87.00 from holding New Residential Investment or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Residential Investment vs. MAGNUM MINING EXP
Performance |
| Timeline |
| New Residential Inve |
| MAGNUM MINING EXP |
New Residential and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Residential and MAGNUM MINING
The main advantage of trading using opposite New Residential and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| New Residential vs. Xtrackers ShortDAX | New Residential vs. Xtrackers LevDAX | New Residential vs. Lyxor 1 |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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