Correlation Between MAGNUM MINING and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on MAGNUM MINING and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and FUYO GENERAL.
Diversification Opportunities for MAGNUM MINING and FUYO GENERAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and FUYO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and FUYO GENERAL go up and down completely randomly.
Pair Corralation between MAGNUM MINING and FUYO GENERAL
If you would invest 5,900 in FUYO GENERAL LEASE on September 3, 2024 and sell it today you would earn a total of 1,050 from holding FUYO GENERAL LEASE or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| MAGNUM MINING EXP |
| FUYO GENERAL LEASE |
MAGNUM MINING and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and FUYO GENERAL
The main advantage of trading using opposite MAGNUM MINING and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Sixt SE |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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