Correlation Between Monument Mining and CONTAGIOUS GAMING
Can any of the company-specific risk be diversified away by investing in both Monument Mining and CONTAGIOUS GAMING 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 Monument Mining and CONTAGIOUS GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and CONTAGIOUS GAMING INC, you can compare the effects of market volatilities on Monument Mining and CONTAGIOUS GAMING 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 Monument Mining with a short position of CONTAGIOUS GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and CONTAGIOUS GAMING.
Diversification Opportunities for Monument Mining and CONTAGIOUS GAMING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monument and CONTAGIOUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited and CONTAGIOUS GAMING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONTAGIOUS GAMING INC and Monument 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 Monument Mining Limited are associated (or correlated) with CONTAGIOUS GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONTAGIOUS GAMING INC has no effect on the direction of Monument Mining i.e., Monument Mining and CONTAGIOUS GAMING go up and down completely randomly.
Pair Corralation between Monument Mining and CONTAGIOUS GAMING
Assuming the 90 days trading horizon Monument Mining is expected to generate 61.04 times less return on investment than CONTAGIOUS GAMING. But when comparing it to its historical volatility, Monument Mining Limited is 21.05 times less risky than CONTAGIOUS GAMING. It trades about 0.07 of its potential returns per unit of risk. CONTAGIOUS GAMING INC is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.15 in CONTAGIOUS GAMING INC on October 13, 2024 and sell it today you would earn a total of 0.15 from holding CONTAGIOUS GAMING INC or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Monument Mining Limited vs. CONTAGIOUS GAMING INC
Performance |
| Timeline |
| Monument Mining |
| CONTAGIOUS GAMING INC |
Monument Mining and CONTAGIOUS GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and CONTAGIOUS GAMING
The main advantage of trading using opposite Monument Mining and CONTAGIOUS GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining position performs unexpectedly, CONTAGIOUS GAMING 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 CONTAGIOUS GAMING will offset losses from the drop in CONTAGIOUS GAMING's long position.| Monument Mining vs. AECOM TECHNOLOGY | Monument Mining vs. Sekisui Chemical Co | Monument Mining vs. SILICON LABORATOR | Monument Mining vs. Sinopec Shanghai Petrochemical |
| CONTAGIOUS GAMING vs. TERADATA | CONTAGIOUS GAMING vs. MAG SILVER | CONTAGIOUS GAMING vs. Monument Mining Limited | CONTAGIOUS GAMING vs. MINCO SILVER |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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