Correlation Between Gaming and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Gaming and Monument 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 Gaming and Monument Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and Monument Mining Limited, you can compare the effects of market volatilities on Gaming and Monument 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 Gaming with a short position of Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and Monument Mining.
Diversification Opportunities for Gaming and Monument Mining
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaming and Monument is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining and Gaming 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 Gaming and Leisure are associated (or correlated) with Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Gaming i.e., Gaming and Monument Mining go up and down completely randomly.
Pair Corralation between Gaming and Monument Mining
Assuming the 90 days horizon Gaming is expected to generate 106.48 times less return on investment than Monument Mining. But when comparing it to its historical volatility, Gaming and Leisure is 3.51 times less risky than Monument Mining. It trades about 0.0 of its potential returns per unit of risk. Monument Mining Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Monument Mining Limited on October 24, 2024 and sell it today you would earn a total of 4.00 from holding Monument Mining Limited or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming and Leisure vs. Monument Mining Limited
Performance |
| Timeline |
| Gaming and Leisure |
| Monument Mining |
Gaming and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and Monument Mining
The main advantage of trading using opposite Gaming and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming position performs unexpectedly, Monument 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Gaming vs. Soken Chemical Engineering | Gaming vs. Yanzhou Coal Mining | Gaming vs. SILICON LABORATOR | Gaming vs. Pembina Pipeline Corp |
| Monument Mining vs. CONTAGIOUS GAMING INC | Monument Mining vs. Entravision Communications | Monument Mining vs. Gaming and Leisure | Monument Mining vs. SOCKET MOBILE NEW |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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