Correlation Between MAGNUM MINING and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on MAGNUM MINING and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Maple Leaf.
Diversification Opportunities for MAGNUM MINING and Maple Leaf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Maple Leaf go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Maple Leaf
If you would invest 6.08 in MAGNUM MINING EXP on September 12, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Maple Leaf Foods
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Maple Leaf Foods |
MAGNUM MINING and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Maple Leaf
The main advantage of trading using opposite MAGNUM MINING and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| Maple Leaf vs. TOREX SEMICONDUCTOR LTD | Maple Leaf vs. Marie Brizard Wine | Maple Leaf vs. Magnachip Semiconductor | Maple Leaf vs. ECHO INVESTMENT ZY |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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