Correlation Between Magna Mining and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Magna Mining and Cantex Mine 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 Mining and Cantex Mine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Mining and Cantex Mine Development, you can compare the effects of market volatilities on Magna Mining and Cantex Mine 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 Mining with a short position of Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Cantex Mine.
Diversification Opportunities for Magna Mining and Cantex Mine
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magna and Cantex is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Cantex Mine Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantex Mine Development and Magna 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 Magna Mining are associated (or correlated) with Cantex Mine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantex Mine Development has no effect on the direction of Magna Mining i.e., Magna Mining and Cantex Mine go up and down completely randomly.
Pair Corralation between Magna Mining and Cantex Mine
Assuming the 90 days horizon Magna Mining is expected to generate 0.94 times more return on investment than Cantex Mine. However, Magna Mining is 1.06 times less risky than Cantex Mine. It trades about 0.11 of its potential returns per unit of risk. Cantex Mine Development is currently generating about -0.01 per unit of risk. If you would invest 60.00 in Magna Mining on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Magna Mining or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magna Mining vs. Cantex Mine Development
Performance |
| Timeline |
| Magna Mining |
| Cantex Mine Development |
Magna Mining and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Mining and Cantex Mine
The main advantage of trading using opposite Magna Mining and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Mining position performs unexpectedly, Cantex Mine 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 Cantex Mine will offset losses from the drop in Cantex Mine's long position.| Magna Mining vs. Emerita Resources Corp | Magna Mining vs. Stone Gold | Magna Mining vs. BCM Resources | Magna Mining vs. Fathom Nickel |
| Cantex Mine vs. Qubec Nickel Corp | Cantex Mine vs. IGO Limited | Cantex Mine vs. Avarone Metals | Cantex Mine vs. Adriatic Metals PLC |
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
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |