Correlation Between CDN IMPERIAL and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL 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 CDN IMPERIAL and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and MAGNUM MINING EXP, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and MAGNUM MINING.
Diversification Opportunities for CDN IMPERIAL and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDN and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK 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 CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and MAGNUM MINING go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and MAGNUM MINING
If you would invest 3,369 in CDN IMPERIAL BANK on September 3, 2024 and sell it today you would earn a total of 2,750 from holding CDN IMPERIAL BANK or generate 81.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. MAGNUM MINING EXP
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| MAGNUM MINING EXP |
CDN IMPERIAL and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and MAGNUM MINING
The main advantage of trading using opposite CDN IMPERIAL and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. TOTAL GABON | CDN IMPERIAL vs. Walgreens Boots Alliance | CDN IMPERIAL vs. Peak Resources Limited |
| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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