Correlation Between Brunswick Exploration and Magna Mining
Can any of the company-specific risk be diversified away by investing in both Brunswick Exploration and Magna 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 Brunswick Exploration and Magna Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick Exploration and Magna Mining, you can compare the effects of market volatilities on Brunswick Exploration and Magna 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 Brunswick Exploration with a short position of Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick Exploration and Magna Mining.
Diversification Opportunities for Brunswick Exploration and Magna Mining
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brunswick and Magna is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick Exploration and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining and Brunswick Exploration 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 Brunswick Exploration are associated (or correlated) with Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of Brunswick Exploration i.e., Brunswick Exploration and Magna Mining go up and down completely randomly.
Pair Corralation between Brunswick Exploration and Magna Mining
Assuming the 90 days horizon Brunswick Exploration is expected to generate 2.37 times less return on investment than Magna Mining. In addition to that, Brunswick Exploration is 1.39 times more volatile than Magna Mining. It trades about 0.03 of its total potential returns per unit of risk. Magna Mining is currently generating about 0.09 per unit of volatility. If you would invest 145.00 in Magna Mining on October 23, 2024 and sell it today you would earn a total of 8.00 from holding Magna Mining or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Brunswick Exploration vs. Magna Mining
Performance |
| Timeline |
| Brunswick Exploration |
| Magna Mining |
Brunswick Exploration and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick Exploration and Magna Mining
The main advantage of trading using opposite Brunswick Exploration and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick Exploration position performs unexpectedly, Magna 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| Brunswick Exploration vs. InZinc Mining | Brunswick Exploration vs. Hercules Metals Corp | Brunswick Exploration vs. Guanajuato Silver | Brunswick Exploration vs. Copaur Minerals |
| Magna Mining vs. Brunswick Exploration | Magna Mining vs. Fireweed Zinc | Magna Mining vs. Emerita Resources Corp | Magna Mining vs. InZinc Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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