Correlation Between MAG SILVER and LUMI GRUPPEN
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and LUMI GRUPPEN 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 LUMI GRUPPEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and LUMI GRUPPEN AS, you can compare the effects of market volatilities on MAG SILVER and LUMI GRUPPEN 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 LUMI GRUPPEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and LUMI GRUPPEN.
Diversification Opportunities for MAG SILVER and LUMI GRUPPEN
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and LUMI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and LUMI GRUPPEN AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUMI GRUPPEN AS 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 LUMI GRUPPEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUMI GRUPPEN AS has no effect on the direction of MAG SILVER i.e., MAG SILVER and LUMI GRUPPEN go up and down completely randomly.
Pair Corralation between MAG SILVER and LUMI GRUPPEN
Assuming the 90 days trading horizon MAG SILVER is expected to generate 1.82 times less return on investment than LUMI GRUPPEN. But when comparing it to its historical volatility, MAG SILVER is 2.16 times less risky than LUMI GRUPPEN. It trades about 0.03 of its potential returns per unit of risk. LUMI GRUPPEN AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 104.00 in LUMI GRUPPEN AS on November 8, 2024 and sell it today you would earn a total of 4.00 from holding LUMI GRUPPEN AS or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. LUMI GRUPPEN AS
Performance |
| Timeline |
| MAG SILVER |
| LUMI GRUPPEN AS |
MAG SILVER and LUMI GRUPPEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and LUMI GRUPPEN
The main advantage of trading using opposite MAG SILVER and LUMI GRUPPEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, LUMI GRUPPEN 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 LUMI GRUPPEN will offset losses from the drop in LUMI GRUPPEN's long position.| MAG SILVER vs. PURETECH HEALTH PLC | MAG SILVER vs. WESANA HEALTH HOLD | MAG SILVER vs. ON SEMICONDUCTOR | MAG SILVER vs. CVS Health |
| LUMI GRUPPEN vs. JAPAN AIRLINES | LUMI GRUPPEN vs. Haier Smart Home | LUMI GRUPPEN vs. United Airlines Holdings | LUMI GRUPPEN vs. Haverty Furniture Companies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |