Correlation Between Sumitomo Mitsui and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Sumitomo Mitsui 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 Sumitomo Mitsui and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Mitsui Construction and MAGNUM MINING EXP, you can compare the effects of market volatilities on Sumitomo Mitsui 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 Sumitomo Mitsui with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Mitsui and MAGNUM MINING.
Diversification Opportunities for Sumitomo Mitsui and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumitomo and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Construction 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 Sumitomo Mitsui 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 Sumitomo Mitsui Construction 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 Sumitomo Mitsui i.e., Sumitomo Mitsui and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Sumitomo Mitsui and MAGNUM MINING
If you would invest 228.00 in Sumitomo Mitsui Construction on September 2, 2024 and sell it today you would earn a total of 14.00 from holding Sumitomo Mitsui Construction or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sumitomo Mitsui Construction vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Sumitomo Mitsui Cons |
| MAGNUM MINING EXP |
Sumitomo Mitsui and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Mitsui and MAGNUM MINING
The main advantage of trading using opposite Sumitomo Mitsui and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Mitsui 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.| Sumitomo Mitsui vs. SIVERS SEMICONDUCTORS AB | Sumitomo Mitsui vs. Darden Restaurants | Sumitomo Mitsui vs. Reliance Steel Aluminum | Sumitomo Mitsui vs. Q2M Managementberatung AG |
| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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