Correlation Between LODESTAR MIN and AXMIN
Can any of the company-specific risk be diversified away by investing in both LODESTAR MIN and AXMIN 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 LODESTAR MIN and AXMIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LODESTAR MIN and AXMIN Inc, you can compare the effects of market volatilities on LODESTAR MIN and AXMIN 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 LODESTAR MIN with a short position of AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of LODESTAR MIN and AXMIN.
Diversification Opportunities for LODESTAR MIN and AXMIN
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between LODESTAR and AXMIN is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding LODESTAR MIN and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc and LODESTAR MIN 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 LODESTAR MIN are associated (or correlated) with AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of LODESTAR MIN i.e., LODESTAR MIN and AXMIN go up and down completely randomly.
Pair Corralation between LODESTAR MIN and AXMIN
If you would invest 1.25 in AXMIN Inc on September 3, 2024 and sell it today you would earn a total of 0.00 from holding AXMIN Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LODESTAR MIN vs. AXMIN Inc
Performance |
| Timeline |
| LODESTAR MIN |
| AXMIN Inc |
LODESTAR MIN and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LODESTAR MIN and AXMIN
The main advantage of trading using opposite LODESTAR MIN and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LODESTAR MIN position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| LODESTAR MIN vs. ELMOS SEMICONDUCTOR | LODESTAR MIN vs. Magnachip Semiconductor | LODESTAR MIN vs. Ameriprise Financial | LODESTAR MIN vs. Taiwan Semiconductor Manufacturing |
| AXMIN vs. Canadian Utilities Limited | AXMIN vs. National Bank Holdings | AXMIN vs. PT Bank Maybank | AXMIN vs. Webster Financial |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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