Correlation Between MAGNUM MINING and CSL
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and CSL 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 CSL 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 CSL LTD SPONADR, you can compare the effects of market volatilities on MAGNUM MINING and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and CSL.
Diversification Opportunities for MAGNUM MINING and CSL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and CSL go up and down completely randomly.
Pair Corralation between MAGNUM MINING and CSL
If you would invest 6.08 in MAGNUM MINING EXP on November 4, 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 | 95.45% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. CSL LTD SPONADR
Performance |
| Timeline |
| MAGNUM MINING EXP |
| CSL LTD SPONADR |
MAGNUM MINING and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and CSL
The main advantage of trading using opposite MAGNUM MINING and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| MAGNUM MINING vs. PURETECH HEALTH PLC | MAGNUM MINING vs. Siemens Healthineers AG | MAGNUM MINING vs. Planet Fitness | MAGNUM MINING vs. EPSILON HEALTHCARE LTD |
| CSL vs. Perseus Mining Limited | CSL vs. Jacquet Metal Service | CSL vs. HK Electric Investments | CSL vs. Scottish Mortgage Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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