Correlation Between MAGNUM MINING and United Rentals
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and United Rentals 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 United Rentals 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 United Rentals, you can compare the effects of market volatilities on MAGNUM MINING and United Rentals 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 United Rentals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and United Rentals.
Diversification Opportunities for MAGNUM MINING and United Rentals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and United Rentals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Rentals 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 United Rentals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Rentals has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and United Rentals go up and down completely randomly.
Pair Corralation between MAGNUM MINING and United Rentals
If you would invest 71,477 in United Rentals on September 3, 2024 and sell it today you would earn a total of 9,263 from holding United Rentals or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. United Rentals
Performance |
| Timeline |
| MAGNUM MINING EXP |
| United Rentals |
MAGNUM MINING and United Rentals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and United Rentals
The main advantage of trading using opposite MAGNUM MINING and United Rentals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, United Rentals 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 United Rentals will offset losses from the drop in United Rentals' long position.| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
| United Rentals vs. Ashtead Group plc | United Rentals vs. WillScot Mobile Mini | United Rentals vs. Sixt SE |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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