Correlation Between MAGNUM MINING and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks PLC, you can compare the effects of market volatilities on MAGNUM MINING and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Fevertree Drinks.
Diversification Opportunities for MAGNUM MINING and Fevertree Drinks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Fevertree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Fevertree Drinks PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks PLC 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks PLC has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Fevertree Drinks go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Fevertree Drinks
If you would invest 775.00 in Fevertree Drinks PLC on November 6, 2024 and sell it today you would earn a total of 165.00 from holding Fevertree Drinks PLC or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Fevertree Drinks PLC
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Fevertree Drinks PLC |
MAGNUM MINING and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Fevertree Drinks
The main advantage of trading using opposite MAGNUM MINING and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| MAGNUM MINING vs. ARDAGH METAL PACDL 0001 | MAGNUM MINING vs. Zijin Mining Group | MAGNUM MINING vs. Calibre Mining Corp | MAGNUM MINING vs. GALENA MINING LTD |
| Fevertree Drinks vs. Pentair plc | Fevertree Drinks vs. BANKINTER ADR 2007 | Fevertree Drinks vs. BANK OF CHINA | Fevertree Drinks vs. TFS FINANCIAL |
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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