Correlation Between MAGNUM MINING and Sterling Construction
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Sterling Construction 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 Sterling Construction 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 Sterling Construction, you can compare the effects of market volatilities on MAGNUM MINING and Sterling Construction 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 Sterling Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Sterling Construction.
Diversification Opportunities for MAGNUM MINING and Sterling Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Sterling Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Construction 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 Sterling Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Construction has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Sterling Construction go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Sterling Construction
If you would invest 13,985 in Sterling Construction on September 2, 2024 and sell it today you would earn a total of 4,325 from holding Sterling Construction or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Sterling Construction
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Sterling Construction |
MAGNUM MINING and Sterling Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Sterling Construction
The main advantage of trading using opposite MAGNUM MINING and Sterling Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Sterling Construction 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 Sterling Construction will offset losses from the drop in Sterling Construction'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 |
| Sterling Construction vs. Larsen Toubro Limited | Sterling Construction vs. Superior Plus Corp | Sterling Construction vs. NMI Holdings | Sterling Construction vs. Origin Agritech |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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