Correlation Between MAG SILVER and CHIBA BANK
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and CHIBA BANK 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 CHIBA BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and CHIBA BANK, you can compare the effects of market volatilities on MAG SILVER and CHIBA BANK 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 CHIBA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and CHIBA BANK.
Diversification Opportunities for MAG SILVER and CHIBA BANK
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and CHIBA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and CHIBA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIBA BANK 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 CHIBA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIBA BANK has no effect on the direction of MAG SILVER i.e., MAG SILVER and CHIBA BANK go up and down completely randomly.
Pair Corralation between MAG SILVER and CHIBA BANK
Assuming the 90 days trading horizon MAG SILVER is expected to under-perform the CHIBA BANK. In addition to that, MAG SILVER is 1.47 times more volatile than CHIBA BANK. It trades about -0.16 of its total potential returns per unit of risk. CHIBA BANK is currently generating about -0.22 per unit of volatility. If you would invest 770.00 in CHIBA BANK on October 17, 2024 and sell it today you would lose (40.00) from holding CHIBA BANK or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MAG SILVER vs. CHIBA BANK
Performance |
| Timeline |
| MAG SILVER |
| CHIBA BANK |
MAG SILVER and CHIBA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and CHIBA BANK
The main advantage of trading using opposite MAG SILVER and CHIBA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, CHIBA BANK 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 CHIBA BANK will offset losses from the drop in CHIBA BANK's long position.| MAG SILVER vs. Geely Automobile Holdings | MAG SILVER vs. National Beverage Corp | MAG SILVER vs. Singapore Telecommunications Limited | MAG SILVER vs. BOSTON BEER A |
| CHIBA BANK vs. SMA Solar Technology | CHIBA BANK vs. Perseus Mining Limited | CHIBA BANK vs. MAG SILVER | CHIBA BANK vs. SCOTT TECHNOLOGY |
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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