Correlation Between MAGNUM MINING and HomeToGo
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and HomeToGo 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 HomeToGo 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 HomeToGo SE, you can compare the effects of market volatilities on MAGNUM MINING and HomeToGo 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 HomeToGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and HomeToGo.
Diversification Opportunities for MAGNUM MINING and HomeToGo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and HomeToGo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and HomeToGo SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeToGo SE 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 HomeToGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeToGo SE has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and HomeToGo go up and down completely randomly.
Pair Corralation between MAGNUM MINING and HomeToGo
If you would invest 168.00 in HomeToGo SE on November 3, 2024 and sell it today you would earn a total of 37.00 from holding HomeToGo SE or generate 22.02% 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. HomeToGo SE
Performance |
| Timeline |
| MAGNUM MINING EXP |
| HomeToGo SE |
MAGNUM MINING and HomeToGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and HomeToGo
The main advantage of trading using opposite MAGNUM MINING and HomeToGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, HomeToGo 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 HomeToGo will offset losses from the drop in HomeToGo's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| HomeToGo vs. Scientific Games | HomeToGo vs. MOVIE GAMES SA | HomeToGo vs. EIDESVIK OFFSHORE NK | HomeToGo vs. WT OFFSHORE |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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