Correlation Between Jade Leader and Mandalay Resources
Can any of the company-specific risk be diversified away by investing in both Jade Leader and Mandalay Resources 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 Jade Leader and Mandalay Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jade Leader Corp and Mandalay Resources Corp, you can compare the effects of market volatilities on Jade Leader and Mandalay Resources 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 Jade Leader with a short position of Mandalay Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jade Leader and Mandalay Resources.
Diversification Opportunities for Jade Leader and Mandalay Resources
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jade and Mandalay is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jade Leader Corp and Mandalay Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mandalay Resources Corp and Jade Leader 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 Jade Leader Corp are associated (or correlated) with Mandalay Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mandalay Resources Corp has no effect on the direction of Jade Leader i.e., Jade Leader and Mandalay Resources go up and down completely randomly.
Pair Corralation between Jade Leader and Mandalay Resources
If you would invest 336.00 in Mandalay Resources Corp on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Mandalay Resources Corp or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jade Leader Corp vs. Mandalay Resources Corp
Performance |
| Timeline |
| Jade Leader Corp |
| Mandalay Resources Corp |
Jade Leader and Mandalay Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jade Leader and Mandalay Resources
The main advantage of trading using opposite Jade Leader and Mandalay Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jade Leader position performs unexpectedly, Mandalay Resources 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 Mandalay Resources will offset losses from the drop in Mandalay Resources' long position.| Jade Leader vs. First Majestic Silver | Jade Leader vs. Ivanhoe Energy | Jade Leader vs. Orezone Gold Corp | Jade Leader vs. Faraday Copper Corp |
| Mandalay Resources vs. North Arrow Minerals | Mandalay Resources vs. International Tower Hill | Mandalay Resources vs. Jade Leader Corp | Mandalay Resources vs. Morien Resources Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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