Correlation Between MAGNUM MINING and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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 AIR PRODCHEMICALS, you can compare the effects of market volatilities on MAGNUM MINING and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and AIR PRODCHEMICALS.
Diversification Opportunities for MAGNUM MINING and AIR PRODCHEMICALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and AIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between MAGNUM MINING and AIR PRODCHEMICALS
If you would invest 29,401 in AIR PRODCHEMICALS on October 26, 2024 and sell it today you would earn a total of 1,119 from holding AIR PRODCHEMICALS or generate 3.81% 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. AIR PRODCHEMICALS
Performance |
| Timeline |
| MAGNUM MINING EXP |
| AIR PRODCHEMICALS |
MAGNUM MINING and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and AIR PRODCHEMICALS
The main advantage of trading using opposite MAGNUM MINING and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, AIR PRODCHEMICALS 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 AIR PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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