Correlation Between MAGNUM MINING and GBS Software
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and GBS Software 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 GBS Software 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 GBS Software AG, you can compare the effects of market volatilities on MAGNUM MINING and GBS Software 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 GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and GBS Software.
Diversification Opportunities for MAGNUM MINING and GBS Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and GBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG 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 GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and GBS Software go up and down completely randomly.
Pair Corralation between MAGNUM MINING and GBS Software
If you would invest 258.00 in GBS Software AG on October 12, 2024 and sell it today you would earn a total of 40.00 from holding GBS Software AG or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. GBS Software AG
Performance |
| Timeline |
| MAGNUM MINING EXP |
| GBS Software AG |
MAGNUM MINING and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and GBS Software
The main advantage of trading using opposite MAGNUM MINING and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software's long position.| MAGNUM MINING vs. DATAGROUP SE | MAGNUM MINING vs. TERADATA | MAGNUM MINING vs. Northern Data AG | MAGNUM MINING vs. ARDAGH METAL PACDL 0001 |
| GBS Software vs. Taiwan Semiconductor Manufacturing | GBS Software vs. MAGNUM MINING EXP | GBS Software vs. MCEWEN MINING INC | GBS Software vs. GREENX METALS LTD |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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