Correlation Between MAGNUM MINING and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Algonquin Power 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 Algonquin Power 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 Algonquin Power Utilities, you can compare the effects of market volatilities on MAGNUM MINING and Algonquin Power 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 Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Algonquin Power.
Diversification Opportunities for MAGNUM MINING and Algonquin Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Algonquin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities 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 Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Algonquin Power go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Algonquin Power
If you would invest 439.00 in Algonquin Power Utilities on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Algonquin Power Utilities or generate 5.69% 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. Algonquin Power Utilities
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Algonquin Power Utilities |
MAGNUM MINING and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Algonquin Power
The main advantage of trading using opposite MAGNUM MINING and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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