Correlation Between MAGNUM MINING and Globex Mining
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Globex Mining 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 Globex Mining 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 Globex Mining Enterprises, you can compare the effects of market volatilities on MAGNUM MINING and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Globex Mining.
Diversification Opportunities for MAGNUM MINING and Globex Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Globex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Globex Mining go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Globex Mining
If you would invest 73.00 in Globex Mining Enterprises on October 26, 2024 and sell it today you would earn a total of 16.00 from holding Globex Mining Enterprises or generate 21.92% 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. Globex Mining Enterprises
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Globex Mining Enterprises |
MAGNUM MINING and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Globex Mining
The main advantage of trading using opposite MAGNUM MINING and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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