Correlation Between MAGNUM MINING and American Express
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and American Express 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 Express 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 Express, you can compare the effects of market volatilities on MAGNUM MINING and American Express 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 Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and American Express.
Diversification Opportunities for MAGNUM MINING and American Express
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 Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and American Express go up and down completely randomly.
Pair Corralation between MAGNUM MINING and American Express
If you would invest 29,310 in American Express on November 4, 2024 and sell it today you would earn a total of 1,285 from holding American Express or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. American Express
Performance |
| Timeline |
| MAGNUM MINING EXP |
| American Express |
MAGNUM MINING and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and American Express
The main advantage of trading using opposite MAGNUM MINING and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, American Express 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 Express will offset losses from the drop in American Express' long position.| MAGNUM MINING vs. PURETECH HEALTH PLC | MAGNUM MINING vs. Siemens Healthineers AG | MAGNUM MINING vs. Planet Fitness | MAGNUM MINING vs. EPSILON HEALTHCARE LTD |
| American Express vs. FORMPIPE SOFTWARE AB | American Express vs. CVW CLEANTECH INC | American Express vs. MAGIC SOFTWARE ENTR | American Express vs. AEGEAN AIRLINES |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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