Correlation Between MAGNUM MINING and Hisense Home
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Hisense Home 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 Hisense Home 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 Hisense Home Appliances, you can compare the effects of market volatilities on MAGNUM MINING and Hisense Home 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 Hisense Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Hisense Home.
Diversification Opportunities for MAGNUM MINING and Hisense Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Hisense is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Hisense Home Appliances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisense Home Appliances 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 Hisense Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisense Home Appliances has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Hisense Home go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Hisense Home
If you would invest 301.00 in Hisense Home Appliances on October 26, 2024 and sell it today you would earn a total of 26.00 from holding Hisense Home Appliances or generate 8.64% 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. Hisense Home Appliances
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Hisense Home Appliances |
MAGNUM MINING and Hisense Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Hisense Home
The main advantage of trading using opposite MAGNUM MINING and Hisense Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Hisense Home 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 Hisense Home will offset losses from the drop in Hisense Home's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| Hisense Home vs. Eurasia Mining Plc | Hisense Home vs. Siamgas And Petrochemicals | Hisense Home vs. MAGNUM MINING EXP | Hisense Home vs. CEOTRONICS |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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