Correlation Between MAGNUM MINING and MGM Resorts
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and MGM Resorts 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 MGM Resorts 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 MGM Resorts International, you can compare the effects of market volatilities on MAGNUM MINING and MGM Resorts 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 MGM Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and MGM Resorts.
Diversification Opportunities for MAGNUM MINING and MGM Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and MGM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 MGM Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and MGM Resorts go up and down completely randomly.
Pair Corralation between MAGNUM MINING and MGM Resorts
If you would invest 3,374 in MGM Resorts International on September 2, 2024 and sell it today you would earn a total of 176.00 from holding MGM Resorts International or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. MGM Resorts International
Performance |
| Timeline |
| MAGNUM MINING EXP |
| MGM Resorts International |
MAGNUM MINING and MGM Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and MGM Resorts
The main advantage of trading using opposite MAGNUM MINING and MGM Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, MGM Resorts 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 MGM Resorts will offset losses from the drop in MGM Resorts' 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 |
| MGM Resorts vs. MAGNUM MINING EXP | MGM Resorts vs. Calibre Mining Corp | MGM Resorts vs. Iridium Communications | MGM Resorts vs. Sumitomo Chemical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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