Correlation Between MAGNUM MINING and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and MACOM Technology 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 MACOM Technology 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 MACOM Technology Solutions, you can compare the effects of market volatilities on MAGNUM MINING and MACOM Technology 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 MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and MACOM Technology.
Diversification Opportunities for MAGNUM MINING and MACOM Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and MACOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and MACOM Technology go up and down completely randomly.
Pair Corralation between MAGNUM MINING and MACOM Technology
If you would invest 12,800 in MACOM Technology Solutions on October 11, 2024 and sell it today you would earn a total of 300.00 from holding MACOM Technology Solutions or generate 2.34% 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. MACOM Technology Solutions
Performance |
| Timeline |
| MAGNUM MINING EXP |
| MACOM Technology Sol |
MAGNUM MINING and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and MACOM Technology
The main advantage of trading using opposite MAGNUM MINING and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| MAGNUM MINING vs. Playtech plc | MAGNUM MINING vs. TRAVEL LEISURE DL 01 | MAGNUM MINING vs. Gaming and Leisure | MAGNUM MINING vs. PLAYWAY SA ZY 10 |
| MACOM Technology vs. Perseus Mining Limited | MACOM Technology vs. Calibre Mining Corp | MACOM Technology vs. MAGNUM MINING EXP | MACOM Technology vs. Altair Engineering |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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