Correlation Between Martin Marietta and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and MAGNUM MINING 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 Martin Marietta and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and MAGNUM MINING EXP, you can compare the effects of market volatilities on Martin Marietta and MAGNUM MINING 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 Martin Marietta with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and MAGNUM MINING.
Diversification Opportunities for Martin Marietta and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Martin and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of Martin Marietta i.e., Martin Marietta and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Martin Marietta and MAGNUM MINING
If you would invest 6.08 in MAGNUM MINING EXP on October 16, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Martin Marietta Materials vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Martin Marietta Materials |
| MAGNUM MINING EXP |
Martin Marietta and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and MAGNUM MINING
The main advantage of trading using opposite Martin Marietta and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| Martin Marietta vs. URBAN OUTFITTERS | Martin Marietta vs. Globex Mining Enterprises | Martin Marietta vs. MCEWEN MINING INC | Martin Marietta vs. MOVIE GAMES SA |
| MAGNUM MINING vs. Singapore Telecommunications Limited | MAGNUM MINING vs. Citic Telecom International | MAGNUM MINING vs. Apollo Investment Corp | MAGNUM MINING vs. CITIC Telecom International |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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