Correlation Between Aristocrat Leisure and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Aristocrat Leisure 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 Aristocrat Leisure and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristocrat Leisure Limited and MAGNUM MINING EXP, you can compare the effects of market volatilities on Aristocrat Leisure 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 Aristocrat Leisure with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristocrat Leisure and MAGNUM MINING.
Diversification Opportunities for Aristocrat Leisure and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aristocrat and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aristocrat Leisure Limited 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 Aristocrat Leisure 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 Aristocrat Leisure Limited 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 Aristocrat Leisure i.e., Aristocrat Leisure and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Aristocrat Leisure and MAGNUM MINING
If you would invest 4,180 in Aristocrat Leisure Limited on November 4, 2024 and sell it today you would earn a total of 200.00 from holding Aristocrat Leisure Limited or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aristocrat Leisure Limited vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Aristocrat Leisure |
| MAGNUM MINING EXP |
Aristocrat Leisure and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristocrat Leisure and MAGNUM MINING
The main advantage of trading using opposite Aristocrat Leisure and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristocrat Leisure 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.| Aristocrat Leisure vs. Ares Management Corp | Aristocrat Leisure vs. WESANA HEALTH HOLD | Aristocrat Leisure vs. HAVERTY FURNITURE A | Aristocrat Leisure vs. Autohome ADR |
| MAGNUM MINING vs. PURETECH HEALTH PLC | MAGNUM MINING vs. Siemens Healthineers AG | MAGNUM MINING vs. Planet Fitness | MAGNUM MINING vs. EPSILON HEALTHCARE 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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