Correlation Between MAGNUM MINING and Hanison Construction
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Hanison Construction 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 Hanison Construction 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 Hanison Construction Holdings, you can compare the effects of market volatilities on MAGNUM MINING and Hanison Construction 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 Hanison Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Hanison Construction.
Diversification Opportunities for MAGNUM MINING and Hanison Construction
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between MAGNUM and Hanison is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Hanison Construction Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanison Construction 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 Hanison Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanison Construction has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Hanison Construction go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Hanison Construction
If you would invest 14.00 in Hanison Construction Holdings on November 6, 2024 and sell it today you would earn a total of 0.00 from holding Hanison Construction Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Hanison Construction Holdings
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Hanison Construction |
MAGNUM MINING and Hanison Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Hanison Construction
The main advantage of trading using opposite MAGNUM MINING and Hanison Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Hanison Construction 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 Hanison Construction will offset losses from the drop in Hanison Construction's 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 |
| Hanison Construction vs. MELIA HOTELS | Hanison Construction vs. Aegean Airlines SA | Hanison Construction vs. COVIVIO HOTELS INH | Hanison Construction vs. UNIVMUSIC GRPADR050 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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