Correlation Between MC Mining and HMS Bergbau
Can any of the company-specific risk be diversified away by investing in both MC Mining and HMS Bergbau 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 HMS Bergbau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MC Mining and HMS Bergbau AG, you can compare the effects of market volatilities on MC Mining and HMS Bergbau 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 HMS Bergbau. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Mining and HMS Bergbau.
Diversification Opportunities for MC Mining and HMS Bergbau
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between G1V and HMS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MC Mining and HMS Bergbau AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMS Bergbau AG 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 HMS Bergbau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMS Bergbau AG has no effect on the direction of MC Mining i.e., MC Mining and HMS Bergbau go up and down completely randomly.
Pair Corralation between MC Mining and HMS Bergbau
Assuming the 90 days horizon MC Mining is expected to generate 102.71 times more return on investment than HMS Bergbau. However, MC Mining is 102.71 times more volatile than HMS Bergbau AG. It trades about 0.12 of its potential returns per unit of risk. HMS Bergbau AG is currently generating about 0.16 per unit of risk. If you would invest 0.20 in MC Mining on September 12, 2024 and sell it today you would lose (0.05) from holding MC Mining or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
MC Mining vs. HMS Bergbau AG
Performance |
| Timeline |
| MC Mining |
| HMS Bergbau AG |
MC Mining and HMS Bergbau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MC Mining and HMS Bergbau
The main advantage of trading using opposite MC Mining and HMS Bergbau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MC Mining position performs unexpectedly, HMS Bergbau 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 HMS Bergbau will offset losses from the drop in HMS Bergbau's long position.| MC Mining vs. PennyMac Mortgage Investment | MC Mining vs. WT OFFSHORE | MC Mining vs. Postal Savings Bank | MC Mining vs. Gladstone Investment |
| HMS Bergbau vs. CHINA SHENHUA ENA | HMS Bergbau vs. China Coal Energy | HMS Bergbau vs. Yancoal Australia | HMS Bergbau vs. Banpu PCL |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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