Correlation Between MAGNUM MINING and Universal Insurance
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Universal Insurance 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 Universal Insurance 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 Universal Insurance Holdings, you can compare the effects of market volatilities on MAGNUM MINING and Universal Insurance 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 Universal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Universal Insurance.
Diversification Opportunities for MAGNUM MINING and Universal Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Universal Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Insurance 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 Universal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Insurance has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Universal Insurance go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Universal Insurance
If you would invest 6.08 in MAGNUM MINING EXP on October 16, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% 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. Universal Insurance Holdings
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Universal Insurance |
MAGNUM MINING and Universal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Universal Insurance
The main advantage of trading using opposite MAGNUM MINING and Universal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Universal Insurance 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 Universal Insurance will offset losses from the drop in Universal Insurance's long position.| MAGNUM MINING vs. Martin Marietta Materials | MAGNUM MINING vs. Air Lease | MAGNUM MINING vs. Playtech plc | MAGNUM MINING vs. JD SPORTS FASH |
| Universal Insurance vs. Hua Hong Semiconductor | Universal Insurance vs. SERI INDUSTRIAL EO | Universal Insurance vs. MAGNUM MINING EXP | Universal Insurance vs. BE Semiconductor Industries |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |