Correlation Between TINC Comm and MAG Silver
Can any of the company-specific risk be diversified away by investing in both TINC Comm and MAG Silver 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 TINC Comm and MAG Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TINC Comm VA and MAG Silver Corp, you can compare the effects of market volatilities on TINC Comm and MAG Silver 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 TINC Comm with a short position of MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and MAG Silver.
Diversification Opportunities for TINC Comm and MAG Silver
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TINC and MAG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp and TINC Comm 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 TINC Comm VA are associated (or correlated) with MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of TINC Comm i.e., TINC Comm and MAG Silver go up and down completely randomly.
Pair Corralation between TINC Comm and MAG Silver
Assuming the 90 days horizon TINC Comm VA is expected to under-perform the MAG Silver. But the stock apears to be less risky and, when comparing its historical volatility, TINC Comm VA is 3.23 times less risky than MAG Silver. The stock trades about -0.01 of its potential returns per unit of risk. The MAG Silver Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,432 in MAG Silver Corp on September 23, 2024 and sell it today you would lose (118.00) from holding MAG Silver Corp or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TINC Comm VA vs. MAG Silver Corp
Performance |
| Timeline |
| TINC Comm VA |
| MAG Silver Corp |
TINC Comm and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TINC Comm and MAG Silver
The main advantage of trading using opposite TINC Comm and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TINC Comm position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.| TINC Comm vs. Virtus Investment Partners | TINC Comm vs. MGIC INVESTMENT | TINC Comm vs. Chuangs China Investments | TINC Comm vs. PennantPark Investment |
| MAG Silver vs. Pan American Silver | MAG Silver vs. First Majestic Silver | MAG Silver vs. Silvercorp Metals | MAG Silver vs. Endeavour Silver Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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