Correlation Between MONGOLIAN MINING and AJ LUCAS
Can any of the company-specific risk be diversified away by investing in both MONGOLIAN MINING and AJ LUCAS 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 MONGOLIAN MINING and AJ LUCAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MONGOLIAN MINING CRPREGS and AJ LUCAS GROUP, you can compare the effects of market volatilities on MONGOLIAN MINING and AJ LUCAS 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 MONGOLIAN MINING with a short position of AJ LUCAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONGOLIAN MINING and AJ LUCAS.
Diversification Opportunities for MONGOLIAN MINING and AJ LUCAS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MONGOLIAN and FW9 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MONGOLIAN MINING CRPREGS and AJ LUCAS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ LUCAS GROUP and MONGOLIAN MINING 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 MONGOLIAN MINING CRPREGS are associated (or correlated) with AJ LUCAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ LUCAS GROUP has no effect on the direction of MONGOLIAN MINING i.e., MONGOLIAN MINING and AJ LUCAS go up and down completely randomly.
Pair Corralation between MONGOLIAN MINING and AJ LUCAS
If you would invest 0.05 in AJ LUCAS GROUP on October 15, 2024 and sell it today you would earn a total of 0.00 from holding AJ LUCAS GROUP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MONGOLIAN MINING CRPREGS vs. AJ LUCAS GROUP
Performance |
| Timeline |
| MONGOLIAN MINING CRPREGS |
| AJ LUCAS GROUP |
MONGOLIAN MINING and AJ LUCAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MONGOLIAN MINING and AJ LUCAS
The main advantage of trading using opposite MONGOLIAN MINING and AJ LUCAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONGOLIAN MINING position performs unexpectedly, AJ LUCAS 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 AJ LUCAS will offset losses from the drop in AJ LUCAS's long position.| MONGOLIAN MINING vs. Cairo Communication SpA | MONGOLIAN MINING vs. Martin Marietta Materials | MONGOLIAN MINING vs. Mitsubishi Materials | MONGOLIAN MINING vs. Sumitomo Rubber Industries |
| AJ LUCAS vs. Superior Plus Corp | AJ LUCAS vs. NMI Holdings | AJ LUCAS vs. SIVERS SEMICONDUCTORS AB | AJ LUCAS vs. Talanx AG |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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