Correlation Between MAGNUM MINING and STMICROELECTRONICS
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS, you can compare the effects of market volatilities on MAGNUM MINING and STMICROELECTRONICS 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 STMICROELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and STMICROELECTRONICS.
Diversification Opportunities for MAGNUM MINING and STMICROELECTRONICS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and STMICROELECTRONICS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and STMICROELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMICROELECTRONICS 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 STMICROELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMICROELECTRONICS has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and STMICROELECTRONICS go up and down completely randomly.
Pair Corralation between MAGNUM MINING and STMICROELECTRONICS
If you would invest 6.08 in MAGNUM MINING EXP on October 14, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. STMICROELECTRONICS
Performance |
| Timeline |
| MAGNUM MINING EXP |
| STMICROELECTRONICS |
MAGNUM MINING and STMICROELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and STMICROELECTRONICS
The main advantage of trading using opposite MAGNUM MINING and STMICROELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, STMICROELECTRONICS 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 STMICROELECTRONICS will offset losses from the drop in STMICROELECTRONICS's long position.| MAGNUM MINING vs. Live Nation Entertainment | MAGNUM MINING vs. GRIFFIN MINING LTD | MAGNUM MINING vs. Perseus Mining Limited | MAGNUM MINING vs. TOWNSQUARE MEDIA INC |
| STMICROELECTRONICS vs. MAGNUM MINING EXP | STMICROELECTRONICS vs. ARDAGH METAL PACDL 0001 | STMICROELECTRONICS vs. De Grey Mining | STMICROELECTRONICS vs. Western Copper and |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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