Correlation Between Ascendis Health and MC Mining
Can any of the company-specific risk be diversified away by investing in both Ascendis Health and MC 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 Ascendis Health and MC Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Health and MC Mining, you can compare the effects of market volatilities on Ascendis Health and MC 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 Ascendis Health with a short position of MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Health and MC Mining.
Diversification Opportunities for Ascendis Health and MC Mining
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascendis and MCZ is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Health and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining and Ascendis Health 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 Ascendis Health are associated (or correlated) with MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of Ascendis Health i.e., Ascendis Health and MC Mining go up and down completely randomly.
Pair Corralation between Ascendis Health and MC Mining
Assuming the 90 days trading horizon Ascendis Health is expected to generate 0.56 times more return on investment than MC Mining. However, Ascendis Health is 1.77 times less risky than MC Mining. It trades about 0.03 of its potential returns per unit of risk. MC Mining is currently generating about 0.0 per unit of risk. If you would invest 5,500 in Ascendis Health on September 14, 2024 and sell it today you would earn a total of 1,800 from holding Ascendis Health or generate 32.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Health vs. MC Mining
Performance |
| Timeline |
| Ascendis Health |
| MC Mining |
Ascendis Health and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Health and MC Mining
The main advantage of trading using opposite Ascendis Health and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Health position performs unexpectedly, MC 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 MC Mining will offset losses from the drop in MC Mining's long position.| Ascendis Health vs. Adcock Ingram Holdings | Ascendis Health vs. Sasol Ltd Bee | Ascendis Health vs. AfricaRhodium ETF | Ascendis Health vs. CoreShares Preference Share |
| MC Mining vs. Sasol Ltd Bee | MC Mining vs. Centaur Bci Balanced | MC Mining vs. Growthpoint Properties | MC Mining vs. Coronation Global Equity |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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