Correlation Between MAGNUM MINING and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Neinor Homes 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 Neinor Homes 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 Neinor Homes SA, you can compare the effects of market volatilities on MAGNUM MINING and Neinor Homes 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 Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Neinor Homes.
Diversification Opportunities for MAGNUM MINING and Neinor Homes
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAGNUM and Neinor is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA 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 Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Neinor Homes go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Neinor Homes
Assuming the 90 days trading horizon MAGNUM MINING EXP is expected to under-perform the Neinor Homes. In addition to that, MAGNUM MINING is 4.63 times more volatile than Neinor Homes SA. It trades about -0.22 of its total potential returns per unit of risk. Neinor Homes SA is currently generating about -0.12 per unit of volatility. If you would invest 1,606 in Neinor Homes SA on November 27, 2024 and sell it today you would lose (54.00) from holding Neinor Homes SA or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Neinor Homes SA
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Neinor Homes SA |
MAGNUM MINING and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Neinor Homes
The main advantage of trading using opposite MAGNUM MINING and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| MAGNUM MINING vs. FIREWEED METALS P | MAGNUM MINING vs. Northern Data AG | MAGNUM MINING vs. Calibre Mining Corp | MAGNUM MINING vs. Cass Information Systems |
| Neinor Homes vs. PARKEN SPORT ENT | Neinor Homes vs. Jupiter Fund Management | Neinor Homes vs. AGF Management Limited | Neinor Homes vs. Brockhaus Capital Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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