Correlation Between Hongkong Land and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Hongkong Land 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 Hongkong Land and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hongkong Land Holdings and MAGNUM MINING EXP, you can compare the effects of market volatilities on Hongkong Land 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 Hongkong Land with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong Land and MAGNUM MINING.
Diversification Opportunities for Hongkong Land and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hongkong and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hongkong Land Holdings 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 Hongkong Land 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 Hongkong Land Holdings 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 Hongkong Land i.e., Hongkong Land and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Hongkong Land and MAGNUM MINING
If you would invest 377.00 in Hongkong Land Holdings on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Hongkong Land Holdings or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hongkong Land Holdings vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Hongkong Land Holdings |
| MAGNUM MINING EXP |
Hongkong Land and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongkong Land and MAGNUM MINING
The main advantage of trading using opposite Hongkong Land and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong Land 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.| Hongkong Land vs. MAGNUM MINING EXP | Hongkong Land vs. Zijin Mining Group | Hongkong Land vs. LG Display Co | Hongkong Land vs. Diamondrock Hospitality Co |
| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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