Correlation Between MAGNUM MINING and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on MAGNUM MINING and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and InPlay Oil.
Diversification Opportunities for MAGNUM MINING and InPlay Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and InPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and InPlay Oil go up and down completely randomly.
Pair Corralation between MAGNUM MINING and InPlay Oil
If you would invest 6.08 in MAGNUM MINING EXP on October 13, 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. InPlay Oil Corp
Performance |
| Timeline |
| MAGNUM MINING EXP |
| InPlay Oil Corp |
MAGNUM MINING and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and InPlay Oil
The main advantage of trading using opposite MAGNUM MINING and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| MAGNUM MINING vs. DATAGROUP SE | MAGNUM MINING vs. TERADATA | MAGNUM MINING vs. Northern Data AG | MAGNUM MINING vs. ARDAGH METAL PACDL 0001 |
| InPlay Oil vs. MAGNUM MINING EXP | InPlay Oil vs. Calibre Mining Corp | InPlay Oil vs. SPORTING | InPlay Oil vs. JD SPORTS FASH |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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