Correlation Between STGEORGE MINING and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and MAGNUM MINING EXP, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and MAGNUM MINING.
Diversification Opportunities for STGEORGE MINING and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STGEORGE and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD 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 STGEORGE 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and MAGNUM MINING go up and down completely randomly.
Pair Corralation between STGEORGE MINING and MAGNUM MINING
If you would invest 1.20 in STGEORGE MINING LTD on October 26, 2024 and sell it today you would lose (0.05) from holding STGEORGE MINING LTD or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. MAGNUM MINING EXP
Performance |
| Timeline |
| STGEORGE MINING LTD |
| MAGNUM MINING EXP |
STGEORGE MINING and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and MAGNUM MINING
The main advantage of trading using opposite STGEORGE MINING and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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