Correlation Between Globe Trade and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Globe Trade 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 Globe Trade and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and MAGNUM MINING EXP, you can compare the effects of market volatilities on Globe Trade 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 Globe Trade with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and MAGNUM MINING.
Diversification Opportunities for Globe Trade and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globe and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre 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 Globe Trade 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 Globe Trade Centre 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 Globe Trade i.e., Globe Trade and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Globe Trade and MAGNUM MINING
If you would invest 6.08 in MAGNUM MINING EXP on September 1, 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 |
Globe Trade Centre vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Globe Trade Centre |
| MAGNUM MINING EXP |
Globe Trade and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and MAGNUM MINING
The main advantage of trading using opposite Globe Trade and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade 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.| Globe Trade vs. SIVERS SEMICONDUCTORS AB | Globe Trade vs. Darden Restaurants | Globe Trade vs. Reliance Steel Aluminum | Globe Trade vs. Q2M Managementberatung AG |
| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |