Correlation Between MAGNUM MINING and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and BORR DRILLING 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 BORR DRILLING 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 BORR DRILLING NEW, you can compare the effects of market volatilities on MAGNUM MINING and BORR DRILLING 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 BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and BORR DRILLING.
Diversification Opportunities for MAGNUM MINING and BORR DRILLING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and BORR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW 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 BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and BORR DRILLING go up and down completely randomly.
Pair Corralation between MAGNUM MINING and BORR DRILLING
If you would invest 6.08 in MAGNUM MINING EXP on November 7, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. BORR DRILLING NEW
Performance |
| Timeline |
| MAGNUM MINING EXP |
| BORR DRILLING NEW |
MAGNUM MINING and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and BORR DRILLING
The main advantage of trading using opposite MAGNUM MINING and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING's long position.| MAGNUM MINING vs. FAST RETAIL ADR | MAGNUM MINING vs. Siemens Healthineers AG | MAGNUM MINING vs. RCI Hospitality Holdings | MAGNUM MINING vs. AEON STORES |
| BORR DRILLING vs. Zijin Mining Group | BORR DRILLING vs. GALENA MINING LTD | BORR DRILLING vs. De Grey Mining | BORR DRILLING vs. Harmony Gold Mining |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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