Correlation Between MAGNUM MINING and Airbus SE
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Airbus SE 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 Airbus SE 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 Airbus SE, you can compare the effects of market volatilities on MAGNUM MINING and Airbus SE 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 Airbus SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Airbus SE.
Diversification Opportunities for MAGNUM MINING and Airbus SE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Airbus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Airbus SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus SE 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 Airbus SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus SE has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Airbus SE go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Airbus SE
If you would invest 3,179 in Airbus SE on October 16, 2024 and sell it today you would earn a total of 681.00 from holding Airbus SE or generate 21.42% 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. Airbus SE
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Airbus SE |
MAGNUM MINING and Airbus SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Airbus SE
The main advantage of trading using opposite MAGNUM MINING and Airbus SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Airbus SE 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 Airbus SE will offset losses from the drop in Airbus SE's long position.| MAGNUM MINING vs. Singapore Telecommunications Limited | MAGNUM MINING vs. Citic Telecom International | MAGNUM MINING vs. Apollo Investment Corp | MAGNUM MINING vs. CITIC Telecom International |
| Airbus SE vs. GALENA MINING LTD | Airbus SE vs. Align Technology | Airbus SE vs. Alfa Financial Software | Airbus SE vs. MAGNUM MINING EXP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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