Correlation Between MAGNUM MINING and WILLIS LEASE
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and WILLIS LEASE 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 WILLIS LEASE 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 WILLIS LEASE FIN, you can compare the effects of market volatilities on MAGNUM MINING and WILLIS LEASE 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 WILLIS LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and WILLIS LEASE.
Diversification Opportunities for MAGNUM MINING and WILLIS LEASE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and WILLIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and WILLIS LEASE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIS LEASE FIN 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 WILLIS LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIS LEASE FIN has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and WILLIS LEASE go up and down completely randomly.
Pair Corralation between MAGNUM MINING and WILLIS LEASE
If you would invest 5,339 in WILLIS LEASE FIN on September 4, 2024 and sell it today you would earn a total of 14,261 from holding WILLIS LEASE FIN or generate 267.11% 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. WILLIS LEASE FIN
Performance |
| Timeline |
| MAGNUM MINING EXP |
| WILLIS LEASE FIN |
MAGNUM MINING and WILLIS LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and WILLIS LEASE
The main advantage of trading using opposite MAGNUM MINING and WILLIS LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, WILLIS LEASE 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 WILLIS LEASE will offset losses from the drop in WILLIS LEASE's long position.| MAGNUM MINING vs. TOTAL GABON | MAGNUM MINING vs. Walgreens Boots Alliance | MAGNUM MINING vs. Peak Resources Limited |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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