Correlation Between MAGNUM MINING and AAC TECHNOLOGHLDGADR
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on MAGNUM MINING and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and AAC TECHNOLOGHLDGADR.
Diversification Opportunities for MAGNUM MINING and AAC TECHNOLOGHLDGADR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and AAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and AAC TECHNOLOGHLDGADR go up and down completely randomly.
Pair Corralation between MAGNUM MINING and AAC TECHNOLOGHLDGADR
If you would invest 374.00 in AAC TECHNOLOGHLDGADR on August 28, 2024 and sell it today you would earn a total of 30.00 from holding AAC TECHNOLOGHLDGADR or generate 8.02% 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. AAC TECHNOLOGHLDGADR
Performance |
| Timeline |
| MAGNUM MINING EXP |
| AAC TECHNOLOGHLDGADR |
MAGNUM MINING and AAC TECHNOLOGHLDGADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and AAC TECHNOLOGHLDGADR
The main advantage of trading using opposite MAGNUM MINING and AAC TECHNOLOGHLDGADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR will offset losses from the drop in AAC TECHNOLOGHLDGADR's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
| AAC TECHNOLOGHLDGADR vs. Cisco Systems | AAC TECHNOLOGHLDGADR vs. Telefonaktiebolaget LM Ericsson | AAC TECHNOLOGHLDGADR vs. Superior Plus Corp | AAC TECHNOLOGHLDGADR vs. NMI Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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