Correlation Between MAGNUM MINING and Arrow Electronics
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Arrow Electronics 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 Arrow Electronics 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 Arrow Electronics, you can compare the effects of market volatilities on MAGNUM MINING and Arrow Electronics 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 Arrow Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Arrow Electronics.
Diversification Opportunities for MAGNUM MINING and Arrow Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Arrow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Arrow Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Electronics 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 Arrow Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Electronics has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Arrow Electronics go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Arrow Electronics
If you would invest 11,100 in Arrow Electronics on October 20, 2024 and sell it today you would earn a total of 100.00 from holding Arrow Electronics or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Arrow Electronics
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Arrow Electronics |
MAGNUM MINING and Arrow Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Arrow Electronics
The main advantage of trading using opposite MAGNUM MINING and Arrow Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Arrow Electronics 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 Arrow Electronics will offset losses from the drop in Arrow Electronics' long position.| MAGNUM MINING vs. Universal Health Realty | MAGNUM MINING vs. JD SPORTS FASH | MAGNUM MINING vs. DAIDO METAL TD | MAGNUM MINING vs. Forsys Metals Corp |
| Arrow Electronics vs. GRENKELEASING Dusseldorf | Arrow Electronics vs. CHEMICAL INDUSTRIES | Arrow Electronics vs. CSSC Offshore Marine | Arrow Electronics vs. China BlueChemical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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