Correlation Between Magna Mining and Nuinsco Resources
Can any of the company-specific risk be diversified away by investing in both Magna Mining and Nuinsco Resources 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 Nuinsco Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Mining and Nuinsco Resources Limited, you can compare the effects of market volatilities on Magna Mining and Nuinsco Resources 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 Nuinsco Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Nuinsco Resources.
Diversification Opportunities for Magna Mining and Nuinsco Resources
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magna and Nuinsco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Nuinsco Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuinsco Resources 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 Nuinsco Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuinsco Resources has no effect on the direction of Magna Mining i.e., Magna Mining and Nuinsco Resources go up and down completely randomly.
Pair Corralation between Magna Mining and Nuinsco Resources
Assuming the 90 days horizon Magna Mining is expected to generate 2.91 times less return on investment than Nuinsco Resources. But when comparing it to its historical volatility, Magna Mining is 3.0 times less risky than Nuinsco Resources. It trades about 0.06 of its potential returns per unit of risk. Nuinsco Resources Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.73 in Nuinsco Resources Limited on August 30, 2024 and sell it today you would lose (0.58) from holding Nuinsco Resources Limited or give up 79.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Magna Mining vs. Nuinsco Resources Limited
Performance |
| Timeline |
| Magna Mining |
| Nuinsco Resources |
Magna Mining and Nuinsco Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Mining and Nuinsco Resources
The main advantage of trading using opposite Magna Mining and Nuinsco Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Mining position performs unexpectedly, Nuinsco Resources 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 Nuinsco Resources will offset losses from the drop in Nuinsco Resources' long position.| Magna Mining vs. Emerita Resources Corp | Magna Mining vs. Stone Gold | Magna Mining vs. BCM Resources | Magna Mining vs. Fathom Nickel |
| Nuinsco Resources vs. Newport Gold | Nuinsco Resources vs. Monarca Minerals | Nuinsco Resources vs. First American Silver | Nuinsco Resources vs. Tamino Minerals |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |