Correlation Between Magna International and Mascot Mines
Can any of the company-specific risk be diversified away by investing in both Magna International and Mascot Mines 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 Magna International and Mascot Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna International and Mascot Mines, you can compare the effects of market volatilities on Magna International and Mascot Mines 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 Magna International with a short position of Mascot Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and Mascot Mines.
Diversification Opportunities for Magna International and Mascot Mines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and Mascot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and Mascot Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mascot Mines and Magna International 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 Magna International are associated (or correlated) with Mascot Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mascot Mines has no effect on the direction of Magna International i.e., Magna International and Mascot Mines go up and down completely randomly.
Pair Corralation between Magna International and Mascot Mines
If you would invest (100.00) in Mascot Mines on September 14, 2024 and sell it today you would earn a total of 100.00 from holding Mascot Mines or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Magna International vs. Mascot Mines
Performance |
| Timeline |
| Magna International |
| Mascot Mines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magna International and Mascot Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and Mascot Mines
The main advantage of trading using opposite Magna International and Mascot Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, Mascot Mines 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 Mascot Mines will offset losses from the drop in Mascot Mines' long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
| Mascot Mines vs. Payoneer Global | Mascot Mines vs. Fortress Transp Infra | Mascot Mines vs. NETGEAR | Mascot Mines vs. Hertz Global Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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