Correlation Between MC Mining and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both MC Mining and InPlay Oil 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 MC Mining and InPlay Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MC Mining and InPlay Oil Corp, you can compare the effects of market volatilities on MC Mining and InPlay Oil 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 MC Mining with a short position of InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Mining and InPlay Oil.
Diversification Opportunities for MC Mining and InPlay Oil
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between G1V and InPlay is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MC Mining and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and MC 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 MC Mining are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of MC Mining i.e., MC Mining and InPlay Oil go up and down completely randomly.
Pair Corralation between MC Mining and InPlay Oil
Assuming the 90 days horizon MC Mining is expected to under-perform the InPlay Oil. In addition to that, MC Mining is 2.19 times more volatile than InPlay Oil Corp. It trades about -0.24 of its total potential returns per unit of risk. InPlay Oil Corp is currently generating about 0.2 per unit of volatility. If you would invest 101.00 in InPlay Oil Corp on October 24, 2024 and sell it today you would earn a total of 12.00 from holding InPlay Oil Corp or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MC Mining vs. InPlay Oil Corp
Performance |
| Timeline |
| MC Mining |
| InPlay Oil Corp |
MC Mining and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MC Mining and InPlay Oil
The main advantage of trading using opposite MC Mining and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MC Mining position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| MC Mining vs. Sumitomo Mitsui Construction | MC Mining vs. SWISS WATER DECAFFCOFFEE | MC Mining vs. Hanison Construction Holdings | MC Mining vs. ZhongAn Online P |
| InPlay Oil vs. United Natural Foods | InPlay Oil vs. Ebro Foods SA | InPlay Oil vs. CeoTronics AG | InPlay Oil vs. EBRO FOODS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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