Correlation Between MAGNUM MINING and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Limited, you can compare the effects of market volatilities on MAGNUM MINING and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Canadian Utilities.
Diversification Opportunities for MAGNUM MINING and Canadian Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Canadian Utilities go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Canadian Utilities
If you would invest 2,319 in Canadian Utilities Limited on August 29, 2024 and sell it today you would earn a total of 108.00 from holding Canadian Utilities Limited or generate 4.66% 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. Canadian Utilities Limited
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Canadian Utilities |
MAGNUM MINING and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Canadian Utilities
The main advantage of trading using opposite MAGNUM MINING and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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