Correlation Between MAGNUM MINING and Cal Maine
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Cal Maine 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 Cal Maine 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 Cal Maine Foods, you can compare the effects of market volatilities on MAGNUM MINING and Cal Maine 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 Cal Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Cal Maine.
Diversification Opportunities for MAGNUM MINING and Cal Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Cal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Cal Maine Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Maine Foods 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 Cal Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Maine Foods has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Cal Maine go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Cal Maine
If you would invest 8,518 in Cal Maine Foods on October 19, 2024 and sell it today you would earn a total of 2,647 from holding Cal Maine Foods or generate 31.08% 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. Cal Maine Foods
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Cal Maine Foods |
MAGNUM MINING and Cal Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Cal Maine
The main advantage of trading using opposite MAGNUM MINING and Cal Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Cal Maine 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 Cal Maine will offset losses from the drop in Cal Maine's long position.| MAGNUM MINING vs. SOGECLAIR SA INH | MAGNUM MINING vs. Air New Zealand | MAGNUM MINING vs. Fair Isaac Corp | MAGNUM MINING vs. Amkor Technology |
| Cal Maine vs. Aluminum of | Cal Maine vs. Dairy Farm International | Cal Maine vs. SIERRA METALS | Cal Maine vs. Air Transport Services |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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