Correlation Between Maggie Beer and Native Mineral
Can any of the company-specific risk be diversified away by investing in both Maggie Beer and Native Mineral 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 Maggie Beer and Native Mineral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maggie Beer Holdings and Native Mineral Resources, you can compare the effects of market volatilities on Maggie Beer and Native Mineral 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 Maggie Beer with a short position of Native Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and Native Mineral.
Diversification Opportunities for Maggie Beer and Native Mineral
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maggie and Native is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and Native Mineral Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Native Mineral Resources and Maggie Beer 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 Maggie Beer Holdings are associated (or correlated) with Native Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Native Mineral Resources has no effect on the direction of Maggie Beer i.e., Maggie Beer and Native Mineral go up and down completely randomly.
Pair Corralation between Maggie Beer and Native Mineral
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 0.76 times more return on investment than Native Mineral. However, Maggie Beer Holdings is 1.32 times less risky than Native Mineral. It trades about 0.09 of its potential returns per unit of risk. Native Mineral Resources is currently generating about 0.05 per unit of risk. If you would invest 5.80 in Maggie Beer Holdings on November 4, 2024 and sell it today you would earn a total of 0.30 from holding Maggie Beer Holdings or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Maggie Beer Holdings vs. Native Mineral Resources
Performance |
| Timeline |
| Maggie Beer Holdings |
| Native Mineral Resources |
Maggie Beer and Native Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maggie Beer and Native Mineral
The main advantage of trading using opposite Maggie Beer and Native Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer position performs unexpectedly, Native Mineral 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 Native Mineral will offset losses from the drop in Native Mineral's long position.| Maggie Beer vs. Clime Investment Management | Maggie Beer vs. Apiam Animal Health | Maggie Beer vs. oOhMedia | Maggie Beer vs. Healthco Healthcare and |
| Native Mineral vs. Hansen Technologies | Native Mineral vs. Zoom2u Technologies | Native Mineral vs. Sports Entertainment Group | Native Mineral vs. Hutchison Telecommunications |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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