Correlation Between MAGNUM MINING and MGIC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and MGIC INVESTMENT 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 MGIC INVESTMENT 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 MGIC INVESTMENT, you can compare the effects of market volatilities on MAGNUM MINING and MGIC INVESTMENT 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 MGIC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and MGIC INVESTMENT.
Diversification Opportunities for MAGNUM MINING and MGIC INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and MGIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and MGIC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC INVESTMENT 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 MGIC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC INVESTMENT has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and MGIC INVESTMENT go up and down completely randomly.
Pair Corralation between MAGNUM MINING and MGIC INVESTMENT
If you would invest 1,195 in MGIC INVESTMENT on August 24, 2024 and sell it today you would earn a total of 1,185 from holding MGIC INVESTMENT or generate 99.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. MGIC INVESTMENT
Performance |
| Timeline |
| MAGNUM MINING EXP |
| MGIC INVESTMENT |
MAGNUM MINING and MGIC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and MGIC INVESTMENT
The main advantage of trading using opposite MAGNUM MINING and MGIC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, MGIC INVESTMENT 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 MGIC INVESTMENT will offset losses from the drop in MGIC INVESTMENT's long position.| MAGNUM MINING vs. Ming Le Sports | MAGNUM MINING vs. PARKEN Sport Entertainment | MAGNUM MINING vs. GREENX METALS LTD | MAGNUM MINING vs. USWE SPORTS AB |
| MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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