Correlation Between MC Mining and EnX
Can any of the company-specific risk be diversified away by investing in both MC Mining and EnX 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 MC Mining and EnX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MC Mining and enX Group, you can compare the effects of market volatilities on MC Mining and EnX 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 MC Mining with a short position of EnX. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Mining and EnX.
Diversification Opportunities for MC Mining and EnX
Good diversification
The 3 months correlation between MCZ and EnX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MC Mining and enX Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enX Group and MC 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 MC Mining are associated (or correlated) with EnX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enX Group has no effect on the direction of MC Mining i.e., MC Mining and EnX go up and down completely randomly.
Pair Corralation between MC Mining and EnX
Assuming the 90 days trading horizon MC Mining is expected to under-perform the EnX. In addition to that, MC Mining is 1.16 times more volatile than enX Group. It trades about -0.19 of its total potential returns per unit of risk. enX Group is currently generating about 0.01 per unit of volatility. If you would invest 50,000 in enX Group on September 14, 2024 and sell it today you would earn a total of 0.00 from holding enX Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MC Mining vs. enX Group
Performance |
| Timeline |
| MC Mining |
| enX Group |
MC Mining and EnX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MC Mining and EnX
The main advantage of trading using opposite MC Mining and EnX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MC Mining position performs unexpectedly, EnX 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 EnX will offset losses from the drop in EnX's long position.| MC Mining vs. Sasol Ltd Bee | MC Mining vs. Centaur Bci Balanced | MC Mining vs. Growthpoint Properties | MC Mining vs. Coronation Global Equity |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |