Correlation Between Northern Data and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Northern Data and MAGNUM MINING 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 Northern Data and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Data AG and MAGNUM MINING EXP, you can compare the effects of market volatilities on Northern Data and MAGNUM MINING 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 Northern Data with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Data and MAGNUM MINING.
Diversification Opportunities for Northern Data and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Data AG and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP and Northern Data 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 Northern Data AG are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of Northern Data i.e., Northern Data and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Northern Data and MAGNUM MINING
If you would invest 4,165 in Northern Data AG on October 12, 2024 and sell it today you would earn a total of 675.00 from holding Northern Data AG or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Northern Data AG vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Northern Data AG |
| MAGNUM MINING EXP |
Northern Data and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Data and MAGNUM MINING
The main advantage of trading using opposite Northern Data and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Data position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| Northern Data vs. BANK MANDIRI | Northern Data vs. PT Bank Mandiri | Northern Data vs. BANK MANDIRI | Northern Data vs. BANK MANDIRI |
| MAGNUM MINING vs. DATAGROUP SE | MAGNUM MINING vs. TERADATA | MAGNUM MINING vs. Northern Data AG | MAGNUM MINING vs. ARDAGH METAL PACDL 0001 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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