Correlation Between MAGNUM MINING and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Advanced Medical 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 Advanced Medical 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 Advanced Medical Solutions, you can compare the effects of market volatilities on MAGNUM MINING and Advanced Medical 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 Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Advanced Medical.
Diversification Opportunities for MAGNUM MINING and Advanced Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol 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 Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Advanced Medical go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Advanced Medical
If you would invest 226.00 in Advanced Medical Solutions on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Advanced Medical Solutions or generate 6.19% 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. Advanced Medical Solutions
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Advanced Medical Sol |
MAGNUM MINING and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Advanced Medical
The main advantage of trading using opposite MAGNUM MINING and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
| Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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