Correlation Between Magna Mining and Stone Gold
Can any of the company-specific risk be diversified away by investing in both Magna Mining and Stone Gold 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 Stone Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Mining and Stone Gold, you can compare the effects of market volatilities on Magna Mining and Stone Gold 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 Stone Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Stone Gold.
Diversification Opportunities for Magna Mining and Stone Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and Stone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Stone Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Gold 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 Stone Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Gold has no effect on the direction of Magna Mining i.e., Magna Mining and Stone Gold go up and down completely randomly.
Pair Corralation between Magna Mining and Stone Gold
Assuming the 90 days horizon Magna Mining is expected to generate 6.32 times more return on investment than Stone Gold. However, Magna Mining is 6.32 times more volatile than Stone Gold. It trades about 0.11 of its potential returns per unit of risk. Stone Gold is currently generating about -0.09 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magna Mining vs. Stone Gold
Performance |
| Timeline |
| Magna Mining |
| Stone Gold |
Magna Mining and Stone Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Mining and Stone Gold
The main advantage of trading using opposite Magna Mining and Stone Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Mining position performs unexpectedly, Stone Gold 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 Stone Gold will offset losses from the drop in Stone Gold's long position.| Magna Mining vs. Emerita Resources Corp | Magna Mining vs. Stone Gold | Magna Mining vs. BCM Resources | Magna Mining vs. Fathom Nickel |
| Stone Gold vs. Qubec Nickel Corp | Stone Gold vs. IGO Limited | Stone Gold vs. Avarone Metals | Stone Gold 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |