Correlation Between Stone Gold and Magna Mining
Can any of the company-specific risk be diversified away by investing in both Stone Gold and Magna 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 Stone Gold and Magna Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and Magna Mining, you can compare the effects of market volatilities on Stone Gold and Magna 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 Stone Gold with a short position of Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and Magna Mining.
Diversification Opportunities for Stone Gold and Magna Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Magna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining and Stone Gold 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 Stone Gold are associated (or correlated) with Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of Stone Gold i.e., Stone Gold and Magna Mining go up and down completely randomly.
Pair Corralation between Stone Gold and Magna Mining
If you would invest 114.00 in Magna Mining on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Magna Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stone Gold vs. Magna Mining
Performance |
| Timeline |
| Stone Gold |
| Magna Mining |
Stone Gold and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and Magna Mining
The main advantage of trading using opposite Stone Gold and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold position performs unexpectedly, Magna 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| Magna Mining vs. Emerita Resources Corp | Magna Mining vs. Stone Gold | Magna Mining vs. BCM Resources | Magna Mining vs. Fathom Nickel |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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