Correlation Between MAG SILVER and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and Nanjing Panda 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 Nanjing Panda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Nanjing Panda Electronics, you can compare the effects of market volatilities on MAG SILVER and Nanjing Panda 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 Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Nanjing Panda.
Diversification Opportunities for MAG SILVER and Nanjing Panda
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and Nanjing is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics 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 Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of MAG SILVER i.e., MAG SILVER and Nanjing Panda go up and down completely randomly.
Pair Corralation between MAG SILVER and Nanjing Panda
If you would invest 1,315 in MAG SILVER on November 3, 2024 and sell it today you would earn a total of 268.00 from holding MAG SILVER or generate 20.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MAG SILVER vs. Nanjing Panda Electronics
Performance |
| Timeline |
| MAG SILVER |
| Nanjing Panda Electronics |
MAG SILVER and Nanjing Panda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Nanjing Panda
The main advantage of trading using opposite MAG SILVER and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's long position.| MAG SILVER vs. Tsingtao Brewery | MAG SILVER vs. Suntory Beverage Food | MAG SILVER vs. Sumitomo Rubber Industries | MAG SILVER vs. Plastic Omnium |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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