Correlation Between MAGNUM MINING and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on MAGNUM MINING and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Vienna Insurance.
Diversification Opportunities for MAGNUM MINING and Vienna Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Vienna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and Vienna Insurance go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Vienna Insurance
If you would invest 2,980 in Vienna Insurance Group on October 14, 2024 and sell it today you would earn a total of 40.00 from holding Vienna Insurance Group or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Vienna Insurance Group
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Vienna Insurance |
MAGNUM MINING and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Vienna Insurance
The main advantage of trading using opposite MAGNUM MINING and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| MAGNUM MINING vs. SOGECLAIR SA INH | MAGNUM MINING vs. Texas Roadhouse | MAGNUM MINING vs. TEXAS ROADHOUSE | MAGNUM MINING vs. Altair Engineering |
| Vienna Insurance vs. MAGNUM MINING EXP | Vienna Insurance vs. MYFAIR GOLD P | Vienna Insurance vs. SYSTEMAIR AB | Vienna Insurance vs. Alaska Air Group |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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