Correlation Between MAGNUM MINING and VULCAN MATERIALS
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and VULCAN MATERIALS 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 VULCAN MATERIALS 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 VULCAN MATERIALS, you can compare the effects of market volatilities on MAGNUM MINING and VULCAN MATERIALS 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 VULCAN MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and VULCAN MATERIALS.
Diversification Opportunities for MAGNUM MINING and VULCAN MATERIALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and VULCAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and VULCAN MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VULCAN MATERIALS 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 VULCAN MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VULCAN MATERIALS has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and VULCAN MATERIALS go up and down completely randomly.
Pair Corralation between MAGNUM MINING and VULCAN MATERIALS
If you would invest 15,852 in VULCAN MATERIALS on October 19, 2024 and sell it today you would earn a total of 10,548 from holding VULCAN MATERIALS or generate 66.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. VULCAN MATERIALS
Performance |
| Timeline |
| MAGNUM MINING EXP |
| VULCAN MATERIALS |
MAGNUM MINING and VULCAN MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and VULCAN MATERIALS
The main advantage of trading using opposite MAGNUM MINING and VULCAN MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, VULCAN MATERIALS 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 VULCAN MATERIALS will offset losses from the drop in VULCAN MATERIALS's long position.| MAGNUM MINING vs. SOGECLAIR SA INH | MAGNUM MINING vs. Air New Zealand | MAGNUM MINING vs. Fair Isaac Corp | MAGNUM MINING vs. Amkor Technology |
| VULCAN MATERIALS vs. TROPHY GAMES DEV | VULCAN MATERIALS vs. PENN NATL GAMING | VULCAN MATERIALS vs. QINGCI GAMES INC | VULCAN MATERIALS vs. Penn National Gaming |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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