Correlation Between COMINTL BANK and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK 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 COMINTL BANK and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and MAGNUM MINING EXP, you can compare the effects of market volatilities on COMINTL BANK 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 COMINTL BANK with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and MAGNUM MINING.
Diversification Opportunities for COMINTL BANK and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COMINTL and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 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 COMINTL BANK 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 COMINTL BANK ADR1 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 COMINTL BANK i.e., COMINTL BANK and MAGNUM MINING go up and down completely randomly.
Pair Corralation between COMINTL BANK and MAGNUM MINING
If you would invest 120.00 in COMINTL BANK ADR1 on August 27, 2024 and sell it today you would earn a total of 7.00 from holding COMINTL BANK ADR1 or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. MAGNUM MINING EXP
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| MAGNUM MINING EXP |
COMINTL BANK and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and MAGNUM MINING
The main advantage of trading using opposite COMINTL BANK and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK 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.| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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