Correlation Between MAGNUM MINING and Nippon Light
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Nippon Light 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 Nippon Light 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 Nippon Light Metal, you can compare the effects of market volatilities on MAGNUM MINING and Nippon Light 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 Nippon Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Nippon Light.
Diversification Opportunities for MAGNUM MINING and Nippon Light
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Nippon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Nippon Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Light Metal 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 Nippon Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Light Metal has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Nippon Light go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Nippon Light
If you would invest 900.00 in Nippon Light Metal on October 16, 2024 and sell it today you would earn a total of 15.00 from holding Nippon Light Metal or generate 1.67% 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. Nippon Light Metal
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Nippon Light Metal |
MAGNUM MINING and Nippon Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Nippon Light
The main advantage of trading using opposite MAGNUM MINING and Nippon Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Nippon Light 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 Nippon Light will offset losses from the drop in Nippon Light's long position.| MAGNUM MINING vs. Singapore Telecommunications Limited | MAGNUM MINING vs. Citic Telecom International | MAGNUM MINING vs. Apollo Investment Corp | MAGNUM MINING vs. CITIC Telecom International |
| Nippon Light vs. alstria office REIT AG | Nippon Light vs. Dairy Farm International | Nippon Light vs. Hanison Construction Holdings | Nippon Light vs. MAGNUM MINING EXP |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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