Correlation Between Alfen NV and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Alfen NV 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 Alfen NV and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfen NV and MAGNUM MINING EXP, you can compare the effects of market volatilities on Alfen NV 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 Alfen NV with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen NV and MAGNUM MINING.
Diversification Opportunities for Alfen NV and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alfen and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alfen NV 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 Alfen NV 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 Alfen NV 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 Alfen NV i.e., Alfen NV and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Alfen NV and MAGNUM MINING
If you would invest 1,335 in Alfen NV on November 7, 2024 and sell it today you would earn a total of 87.00 from holding Alfen NV or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfen NV vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Alfen NV |
| MAGNUM MINING EXP |
Alfen NV and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfen NV and MAGNUM MINING
The main advantage of trading using opposite Alfen NV and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen NV 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.| Alfen NV vs. DATATEC LTD 2 | Alfen NV vs. DATADOT TECHNOLOGY | Alfen NV vs. Agilent Technologies | Alfen NV vs. Alliance Data Systems |
| MAGNUM MINING vs. ARDAGH METAL PACDL 0001 | MAGNUM MINING vs. Zijin Mining Group | MAGNUM MINING vs. Calibre Mining Corp | MAGNUM MINING vs. GALENA MINING LTD |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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