Correlation Between Collective Mining and PNM Old
Can any of the company-specific risk be diversified away by investing in both Collective Mining and PNM Old 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 Collective Mining and PNM Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collective Mining and PNM Old, you can compare the effects of market volatilities on Collective Mining and PNM Old 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 Collective Mining with a short position of PNM Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collective Mining and PNM Old.
Diversification Opportunities for Collective Mining and PNM Old
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Collective and PNM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Collective Mining and PNM Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNM Old and Collective Mining 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 Collective Mining are associated (or correlated) with PNM Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNM Old has no effect on the direction of Collective Mining i.e., Collective Mining and PNM Old go up and down completely randomly.
Pair Corralation between Collective Mining and PNM Old
If you would invest 379.00 in Collective Mining on October 12, 2024 and sell it today you would earn a total of 61.00 from holding Collective Mining or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Collective Mining vs. PNM Old
Performance |
| Timeline |
| Collective Mining |
| PNM Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Collective Mining and PNM Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collective Mining and PNM Old
The main advantage of trading using opposite Collective Mining and PNM Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collective Mining position performs unexpectedly, PNM Old 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 PNM Old will offset losses from the drop in PNM Old's long position.| Collective Mining vs. Mangazeya Mining | Collective Mining vs. Sonos Inc | Collective Mining vs. Emerson Radio | Collective Mining vs. California Engels Mining |
| PNM Old vs. Portland General Electric | PNM Old vs. MGE Energy | PNM Old vs. CMS Energy | PNM Old vs. OGE Energy |
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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