Correlation Between MAGNUM MINING and New Residential
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and New Residential 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 MAGNUM MINING and New Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNUM MINING EXP and New Residential Investment, you can compare the effects of market volatilities on MAGNUM MINING and New Residential 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 MAGNUM MINING with a short position of New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and New Residential.
Diversification Opportunities for MAGNUM MINING and New Residential
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve and MAGNUM 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 MAGNUM MINING EXP are associated (or correlated) with New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and New Residential go up and down completely randomly.
Pair Corralation between MAGNUM MINING and New Residential
If you would invest 965.00 in New Residential Investment on August 28, 2024 and sell it today you would earn a total of 87.00 from holding New Residential Investment or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. New Residential Investment
Performance |
| Timeline |
| MAGNUM MINING EXP |
| New Residential Inve |
MAGNUM MINING and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and New Residential
The main advantage of trading using opposite MAGNUM MINING and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
| New Residential vs. Xtrackers ShortDAX | New Residential vs. Xtrackers LevDAX | New Residential vs. Lyxor 1 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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