Correlation Between MAGNUM MINING and CHINA EDUCATION
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and CHINA EDUCATION 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 CHINA EDUCATION 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 CHINA EDUCATION GROUP, you can compare the effects of market volatilities on MAGNUM MINING and CHINA EDUCATION 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 CHINA EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and CHINA EDUCATION.
Diversification Opportunities for MAGNUM MINING and CHINA EDUCATION
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and CHINA EDUCATION GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EDUCATION GROUP 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 CHINA EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EDUCATION GROUP has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and CHINA EDUCATION go up and down completely randomly.
Pair Corralation between MAGNUM MINING and CHINA EDUCATION
If you would invest 24.00 in CHINA EDUCATION GROUP on September 3, 2024 and sell it today you would earn a total of 17.00 from holding CHINA EDUCATION GROUP or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. CHINA EDUCATION GROUP
Performance |
| Timeline |
| MAGNUM MINING EXP |
| CHINA EDUCATION GROUP |
MAGNUM MINING and CHINA EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and CHINA EDUCATION
The main advantage of trading using opposite MAGNUM MINING and CHINA EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, CHINA EDUCATION 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 CHINA EDUCATION will offset losses from the drop in CHINA EDUCATION's long position.| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
| CHINA EDUCATION vs. INDOFOOD AGRI RES | CHINA EDUCATION vs. MUTUIONLINE | CHINA EDUCATION vs. Gruppo Mutuionline SpA | CHINA EDUCATION vs. GLG LIFE TECH |
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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