Correlation Between MAGNUM MINING and RELX PLC
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and RELX PLC 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 RELX PLC 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 RELX PLC, you can compare the effects of market volatilities on MAGNUM MINING and RELX PLC 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 RELX PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and RELX PLC.
Diversification Opportunities for MAGNUM MINING and RELX PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and RELX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and RELX PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RELX PLC 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 RELX PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RELX PLC has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and RELX PLC go up and down completely randomly.
Pair Corralation between MAGNUM MINING and RELX PLC
If you would invest 4,370 in RELX PLC on October 22, 2024 and sell it today you would earn a total of 322.00 from holding RELX PLC or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. RELX PLC
Performance |
| Timeline |
| MAGNUM MINING EXP |
| RELX PLC |
MAGNUM MINING and RELX PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and RELX PLC
The main advantage of trading using opposite MAGNUM MINING and RELX PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, RELX PLC 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 RELX PLC will offset losses from the drop in RELX PLC's long position.| MAGNUM MINING vs. Sunny Optical Technology | MAGNUM MINING vs. X FAB Silicon Foundries | MAGNUM MINING vs. Vishay Intertechnology | MAGNUM MINING vs. MARKET VECTR RETAIL |
| RELX PLC vs. bet at home AG | RELX PLC vs. FIREWEED METALS P | RELX PLC vs. HomeToGo SE | RELX PLC 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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