Correlation Between Monument Mining and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Monument Mining and Maple Peak 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 Monument Mining and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and Maple Peak Investments, you can compare the effects of market volatilities on Monument Mining and Maple Peak 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 Monument Mining with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and Maple Peak.
Diversification Opportunities for Monument Mining and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monument and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments and Monument 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 Monument Mining Limited are associated (or correlated) with Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Monument Mining i.e., Monument Mining and Maple Peak go up and down completely randomly.
Pair Corralation between Monument Mining and Maple Peak
If you would invest 29.00 in Monument Mining Limited on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Monument Mining Limited or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monument Mining Limited vs. Maple Peak Investments
Performance |
| Timeline |
| Monument Mining |
| Maple Peak Investments |
Monument Mining and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and Maple Peak
The main advantage of trading using opposite Monument Mining and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Monument Mining vs. Majestic Gold Corp | Monument Mining vs. Gunpoint Exploration | Monument Mining vs. Q Gold Resources | Monument Mining vs. Mundoro Capital |
| Maple Peak vs. Royal Bank of | Maple Peak vs. National Bank of | Maple Peak vs. High Liner Foods | Maple Peak vs. Financial 15 Split |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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