Correlation Between MAGNUM MINING and American Homes
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and American 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 American 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 American Homes 4, you can compare the effects of market volatilities on MAGNUM MINING and American 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 American Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and American Homes.
Diversification Opportunities for MAGNUM MINING and American Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and American Homes 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Homes 4 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 American Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Homes 4 has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and American Homes go up and down completely randomly.
Pair Corralation between MAGNUM MINING and American Homes
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. American Homes 4
Performance |
| Timeline |
| MAGNUM MINING EXP |
| American Homes 4 |
MAGNUM MINING and American Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and American Homes
The main advantage of trading using opposite MAGNUM MINING and American Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, American 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 American Homes will offset losses from the drop in American Homes' long position.| MAGNUM MINING vs. DATAGROUP SE | MAGNUM MINING vs. TERADATA | MAGNUM MINING vs. Northern Data AG | MAGNUM MINING vs. ARDAGH METAL PACDL 0001 |
| American Homes vs. INVITATION HOMES DL | American Homes vs. Superior Plus Corp | American Homes vs. NMI Holdings | American Homes vs. SIVERS SEMICONDUCTORS AB |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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