Correlation Between TOWNSQUARE MEDIA and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and MAGNUM MINING EXP, you can compare the effects of market volatilities on TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and MAGNUM MINING.
Diversification Opportunities for TOWNSQUARE MEDIA and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TOWNSQUARE and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and MAGNUM MINING go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and MAGNUM MINING
If you would invest 598.00 in TOWNSQUARE MEDIA INC on October 13, 2024 and sell it today you would earn a total of 292.00 from holding TOWNSQUARE MEDIA INC or generate 48.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. MAGNUM MINING EXP
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| MAGNUM MINING EXP |
TOWNSQUARE MEDIA and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and MAGNUM MINING
The main advantage of trading using opposite TOWNSQUARE MEDIA and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA 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.| TOWNSQUARE MEDIA vs. Boyd Gaming | TOWNSQUARE MEDIA vs. CONTAGIOUS GAMING INC | TOWNSQUARE MEDIA vs. DETALION GAMES SA | TOWNSQUARE MEDIA vs. Hochschild Mining plc |
| MAGNUM MINING vs. Live Nation Entertainment | MAGNUM MINING vs. GRIFFIN MINING LTD | MAGNUM MINING vs. Perseus Mining Limited | MAGNUM MINING vs. TOWNSQUARE MEDIA INC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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