Correlation Between MAGNUM MINING and CVW CLEANTECH
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and CVW CLEANTECH 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 CVW CLEANTECH 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 CVW CLEANTECH INC, you can compare the effects of market volatilities on MAGNUM MINING and CVW CLEANTECH 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 CVW CLEANTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and CVW CLEANTECH.
Diversification Opportunities for MAGNUM MINING and CVW CLEANTECH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and CVW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and CVW CLEANTECH INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CLEANTECH INC 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 CVW CLEANTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CLEANTECH INC has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and CVW CLEANTECH go up and down completely randomly.
Pair Corralation between MAGNUM MINING and CVW CLEANTECH
If you would invest 81.00 in CVW CLEANTECH INC on September 13, 2024 and sell it today you would lose (21.00) from holding CVW CLEANTECH INC or give up 25.93% 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. CVW CLEANTECH INC
Performance |
| Timeline |
| MAGNUM MINING EXP |
| CVW CLEANTECH INC |
MAGNUM MINING and CVW CLEANTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and CVW CLEANTECH
The main advantage of trading using opposite MAGNUM MINING and CVW CLEANTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, CVW CLEANTECH 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 CVW CLEANTECH will offset losses from the drop in CVW CLEANTECH's long position.| MAGNUM MINING vs. Highlight Communications AG | MAGNUM MINING vs. Charter Communications | MAGNUM MINING vs. SALESFORCE INC CDR | MAGNUM MINING vs. Carsales |
| CVW CLEANTECH vs. Calibre Mining Corp | CVW CLEANTECH vs. VARIOUS EATERIES LS | CVW CLEANTECH vs. Harmony Gold Mining | CVW CLEANTECH vs. Lion One Metals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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