Correlation Between Chuangs China and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and MAGNUM MINING EXP, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and MAGNUM MINING.
Diversification Opportunities for Chuangs China and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments 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 Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Chuangs China and MAGNUM MINING
If you would invest 6.08 in MAGNUM MINING EXP on August 28, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Chuangs China Investments |
| MAGNUM MINING EXP |
Chuangs China and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and MAGNUM MINING
The main advantage of trading using opposite Chuangs China and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech | Chuangs China 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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