Correlation Between MAGNUM MINING and SECOM CO
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and SECOM CO 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 SECOM CO 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 SECOM LTD, you can compare the effects of market volatilities on MAGNUM MINING and SECOM CO 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 SECOM CO. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and SECOM CO.
Diversification Opportunities for MAGNUM MINING and SECOM CO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and SECOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and SECOM LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECOM LTD 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 SECOM CO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECOM LTD has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and SECOM CO go up and down completely randomly.
Pair Corralation between MAGNUM MINING and SECOM CO
If you would invest 6.08 in MAGNUM MINING EXP on October 17, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% 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. SECOM LTD
Performance |
| Timeline |
| MAGNUM MINING EXP |
| SECOM LTD |
MAGNUM MINING and SECOM CO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and SECOM CO
The main advantage of trading using opposite MAGNUM MINING and SECOM CO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, SECOM CO 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 SECOM CO will offset losses from the drop in SECOM CO's long position.| MAGNUM MINING vs. National Beverage Corp | MAGNUM MINING vs. Texas Roadhouse | MAGNUM MINING vs. MOLSON RS BEVERAGE | MAGNUM MINING vs. BROADWIND ENRGY |
| SECOM CO vs. MAGNUM MINING EXP | SECOM CO vs. Perseus Mining Limited | SECOM CO vs. CANON MARKETING JP | SECOM CO vs. BW OFFSHORE LTD |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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