Correlation Between ADRIATIC METALS and MAGNUM MINING

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS 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 ADRIATIC METALS and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and MAGNUM MINING EXP, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and MAGNUM MINING.

Diversification Opportunities for ADRIATIC METALS and MAGNUM MINING

ADRIATICMAGNUMDiversified AwayADRIATICMAGNUMDiversified Away100%
-0.41
  Correlation Coefficient

Very good diversification

The 3 months correlation between ADRIATIC and MAGNUM is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and MAGNUM MINING go up and down completely randomly.

Pair Corralation between ADRIATIC METALS and MAGNUM MINING

Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 0.82 times more return on investment than MAGNUM MINING. However, ADRIATIC METALS LS 013355 is 1.22 times less risky than MAGNUM MINING. It trades about 0.16 of its potential returns per unit of risk. MAGNUM MINING EXP is currently generating about -0.22 per unit of risk. If you would invest  236.00  in ADRIATIC METALS LS 013355 on November 25, 2024 and sell it today you would earn a total of  38.00  from holding ADRIATIC METALS LS 013355 or generate 16.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

ADRIATIC METALS LS 013355  vs.  MAGNUM MINING EXP

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010
JavaScript chart by amCharts 3.21.153FNA M8Z
       Timeline  
ADRIATIC METALS LS 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ADRIATIC METALS LS 013355 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ADRIATIC METALS reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.22.32.42.52.62.7
MAGNUM MINING EXP 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days MAGNUM MINING EXP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0460.0480.050.0520.0540.0560.0580.06

ADRIATIC METALS and MAGNUM MINING Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.98-8.97-5.96-2.96-0.05013.066.179.2812.39 0.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.153FNA M8Z
       Returns  

Pair Trading with ADRIATIC METALS and MAGNUM MINING

The main advantage of trading using opposite ADRIATIC METALS and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.
The idea behind ADRIATIC METALS LS 013355 and MAGNUM MINING EXP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
FinTech Suite
Use AI to screen and filter profitable investment opportunities