Correlation Between Mantengu Mining and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Mantengu Mining and Boxer Retail 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 Mantengu Mining and Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantengu Mining and Boxer Retail, you can compare the effects of market volatilities on Mantengu Mining and Boxer Retail 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 Mantengu Mining with a short position of Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantengu Mining and Boxer Retail.
Diversification Opportunities for Mantengu Mining and Boxer Retail
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mantengu and Boxer is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mantengu Mining and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail and Mantengu 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 Mantengu Mining are associated (or correlated) with Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Mantengu Mining i.e., Mantengu Mining and Boxer Retail go up and down completely randomly.
Pair Corralation between Mantengu Mining and Boxer Retail
Assuming the 90 days trading horizon Mantengu Mining is expected to generate 2.09 times more return on investment than Boxer Retail. However, Mantengu Mining is 2.09 times more volatile than Boxer Retail. It trades about 0.02 of its potential returns per unit of risk. Boxer Retail is currently generating about 0.03 per unit of risk. If you would invest 6,700 in Mantengu Mining on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Mantengu Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mantengu Mining vs. Boxer Retail
Performance |
| Timeline |
| Mantengu Mining |
| Boxer Retail |
Mantengu Mining and Boxer Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantengu Mining and Boxer Retail
The main advantage of trading using opposite Mantengu Mining and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantengu Mining position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.| Mantengu Mining vs. RCL Foods | Mantengu Mining vs. Deneb Investments | Mantengu Mining vs. Brimstone Investment | Mantengu Mining vs. Trematon Capital Investments |
| Boxer Retail vs. Prosus NV | Boxer Retail vs. Compagnie Financire Richemont | Boxer Retail vs. British American Tobacco | Boxer Retail vs. Glencore PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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