Correlation Between MAGNUM MINING and Assured Guaranty
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Assured Guaranty 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 Assured Guaranty 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 Assured Guaranty, you can compare the effects of market volatilities on MAGNUM MINING and Assured Guaranty 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 Assured Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Assured Guaranty.
Diversification Opportunities for MAGNUM MINING and Assured Guaranty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Assured is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Assured Guaranty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assured Guaranty 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 Assured Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assured Guaranty has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Assured Guaranty go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Assured Guaranty
If you would invest 8,400 in Assured Guaranty on October 23, 2024 and sell it today you would earn a total of 500.00 from holding Assured Guaranty or generate 5.95% 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. Assured Guaranty
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Assured Guaranty |
MAGNUM MINING and Assured Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Assured Guaranty
The main advantage of trading using opposite MAGNUM MINING and Assured Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Assured Guaranty 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 Assured Guaranty will offset losses from the drop in Assured Guaranty's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| Assured Guaranty vs. Thai Beverage Public | Assured Guaranty vs. Chiba Bank | Assured Guaranty vs. THAI BEVERAGE | Assured Guaranty vs. United Insurance Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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