Correlation Between Magnetic Resources and Patriot Battery
Can any of the company-specific risk be diversified away by investing in both Magnetic Resources and Patriot Battery 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 Magnetic Resources and Patriot Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnetic Resources NL and Patriot Battery Metals, you can compare the effects of market volatilities on Magnetic Resources and Patriot Battery 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 Magnetic Resources with a short position of Patriot Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnetic Resources and Patriot Battery.
Diversification Opportunities for Magnetic Resources and Patriot Battery
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnetic and Patriot is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Magnetic Resources NL and Patriot Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patriot Battery Metals and Magnetic Resources 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 Magnetic Resources NL are associated (or correlated) with Patriot Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patriot Battery Metals has no effect on the direction of Magnetic Resources i.e., Magnetic Resources and Patriot Battery go up and down completely randomly.
Pair Corralation between Magnetic Resources and Patriot Battery
Assuming the 90 days trading horizon Magnetic Resources NL is expected to generate 0.68 times more return on investment than Patriot Battery. However, Magnetic Resources NL is 1.46 times less risky than Patriot Battery. It trades about -0.09 of its potential returns per unit of risk. Patriot Battery Metals is currently generating about -0.11 per unit of risk. If you would invest 147.00 in Magnetic Resources NL on September 2, 2024 and sell it today you would lose (30.00) from holding Magnetic Resources NL or give up 20.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnetic Resources NL vs. Patriot Battery Metals
Performance |
| Timeline |
| Magnetic Resources |
| Patriot Battery Metals |
Magnetic Resources and Patriot Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnetic Resources and Patriot Battery
The main advantage of trading using opposite Magnetic Resources and Patriot Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnetic Resources position performs unexpectedly, Patriot Battery 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 Patriot Battery will offset losses from the drop in Patriot Battery's long position.| Magnetic Resources vs. Patriot Battery Metals | Magnetic Resources vs. Infomedia | Magnetic Resources vs. Super Retail Group | Magnetic Resources vs. Cleanaway Waste Management |
| Patriot Battery vs. Green Technology Metals | Patriot Battery vs. Champion Iron | Patriot Battery vs. Ainsworth Game Technology | Patriot Battery vs. Tombador Iron |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |