Correlation Between SHIP HEALTHCARE and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and MAGNUM MINING EXP, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and MAGNUM MINING.
Diversification Opportunities for SHIP HEALTHCARE and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SHIP and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and MAGNUM MINING go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and MAGNUM MINING
If you would invest 1,330 in SHIP HEALTHCARE HLDGINC on October 7, 2024 and sell it today you would earn a total of 10.00 from holding SHIP HEALTHCARE HLDGINC or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. MAGNUM MINING EXP
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| MAGNUM MINING EXP |
SHIP HEALTHCARE and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and MAGNUM MINING
The main advantage of trading using opposite SHIP HEALTHCARE and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. Resmed Inc DRC | SHIP HEALTHCARE vs. Sartorius Stedim Biotech | SHIP HEALTHCARE vs. Superior Plus Corp | SHIP HEALTHCARE vs. NMI Holdings |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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