Correlation Between MAGNUM MINING and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on MAGNUM MINING and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and PICKN PAY.
Diversification Opportunities for MAGNUM MINING and PICKN PAY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and PICKN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and PICKN PAY go up and down completely randomly.
Pair Corralation between MAGNUM MINING and PICKN PAY
If you would invest 112.00 in PICKN PAY STORES on September 2, 2024 and sell it today you would earn a total of 40.00 from holding PICKN PAY STORES or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. PICKN PAY STORES
Performance |
| Timeline |
| MAGNUM MINING EXP |
| PICKN PAY STORES |
MAGNUM MINING and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and PICKN PAY
The main advantage of trading using opposite MAGNUM MINING and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's 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 |
| PICKN PAY vs. SIVERS SEMICONDUCTORS AB | PICKN PAY vs. Darden Restaurants | PICKN PAY vs. Reliance Steel Aluminum | PICKN PAY vs. Q2M Managementberatung AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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