Correlation Between MAGNUM MINING and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Selective Insurance 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 Selective Insurance 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 Selective Insurance Group, you can compare the effects of market volatilities on MAGNUM MINING and Selective Insurance 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 Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Selective Insurance.
Diversification Opportunities for MAGNUM MINING and Selective Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Selective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance 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 Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Selective Insurance go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Selective Insurance
If you would invest 9,334 in Selective Insurance Group on August 28, 2024 and sell it today you would lose (234.00) from holding Selective Insurance Group or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Selective Insurance Group
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Selective Insurance |
MAGNUM MINING and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Selective Insurance
The main advantage of trading using opposite MAGNUM MINING and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Microsoft | MAGNUM MINING vs. Microsoft |
| Selective Insurance vs. Superior Plus Corp | Selective Insurance vs. NMI Holdings | Selective Insurance vs. Origin Agritech | Selective Insurance vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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