Correlation Between MAG SILVER and Haier Smart
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and Haier Smart 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 MAG SILVER and Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Haier Smart Home, you can compare the effects of market volatilities on MAG SILVER and Haier Smart 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 MAG SILVER with a short position of Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Haier Smart.
Diversification Opportunities for MAG SILVER and Haier Smart
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and Haier is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home and MAG SILVER 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 MAG SILVER are associated (or correlated) with Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of MAG SILVER i.e., MAG SILVER and Haier Smart go up and down completely randomly.
Pair Corralation between MAG SILVER and Haier Smart
Assuming the 90 days trading horizon MAG SILVER is expected to generate 2.17 times more return on investment than Haier Smart. However, MAG SILVER is 2.17 times more volatile than Haier Smart Home. It trades about 0.24 of its potential returns per unit of risk. Haier Smart Home is currently generating about -0.01 per unit of risk. If you would invest 1,375 in MAG SILVER on November 6, 2024 and sell it today you would earn a total of 208.00 from holding MAG SILVER or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. Haier Smart Home
Performance |
| Timeline |
| MAG SILVER |
| Haier Smart Home |
MAG SILVER and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Haier Smart
The main advantage of trading using opposite MAG SILVER and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| MAG SILVER vs. SIVERS SEMICONDUCTORS AB | MAG SILVER vs. NorAm Drilling AS | MAG SILVER vs. Volkswagen AG | MAG SILVER vs. Darden Restaurants |
| Haier Smart vs. Pentair plc | Haier Smart vs. MTY Food Group | Haier Smart vs. Air New Zealand | Haier Smart vs. ALTAIR RES INC |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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