Correlation Between MAGNUM MINING and Microsoft
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Microsoft 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 Microsoft 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 Microsoft, you can compare the effects of market volatilities on MAGNUM MINING and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Microsoft.
Diversification Opportunities for MAGNUM MINING and Microsoft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Microsoft go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Microsoft
If you would invest 37,431 in Microsoft on September 3, 2024 and sell it today you would earn a total of 2,629 from holding Microsoft or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Microsoft
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Microsoft |
MAGNUM MINING and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Microsoft
The main advantage of trading using opposite MAGNUM MINING and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
| Microsoft vs. Applied Materials | Microsoft vs. Mitsubishi Materials | Microsoft vs. CODERE ONLINE LUX | Microsoft vs. SANOK RUBBER 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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