Correlation Between MAGNUM MINING and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and RETAIL FOOD 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 RETAIL FOOD 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 RETAIL FOOD GROUP, you can compare the effects of market volatilities on MAGNUM MINING and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and RETAIL FOOD.
Diversification Opportunities for MAGNUM MINING and RETAIL FOOD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and RETAIL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD GROUP 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and RETAIL FOOD go up and down completely randomly.
Pair Corralation between MAGNUM MINING and RETAIL FOOD
If you would invest 3.75 in RETAIL FOOD GROUP on September 1, 2024 and sell it today you would earn a total of 0.45 from holding RETAIL FOOD GROUP or generate 12.0% 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. RETAIL FOOD GROUP
Performance |
| Timeline |
| MAGNUM MINING EXP |
| RETAIL FOOD GROUP |
MAGNUM MINING and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and RETAIL FOOD
The main advantage of trading using opposite MAGNUM MINING and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
| RETAIL FOOD vs. Gamma Communications plc | RETAIL FOOD vs. Entravision Communications | RETAIL FOOD vs. COMBA TELECOM SYST | RETAIL FOOD vs. Computer And Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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