Correlation Between Selective Insurance and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Selective Insurance 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 Selective Insurance and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selective Insurance Group and MAGNUM MINING EXP, you can compare the effects of market volatilities on Selective Insurance 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 Selective Insurance with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selective Insurance and MAGNUM MINING.
Diversification Opportunities for Selective Insurance and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Selective and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group 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 Selective Insurance 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 Selective Insurance Group 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 Selective Insurance i.e., Selective Insurance and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Selective Insurance and MAGNUM MINING
If you would invest 8,416 in Selective Insurance Group on September 1, 2024 and sell it today you would earn a total of 884.00 from holding Selective Insurance Group or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selective Insurance Group vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Selective Insurance |
| MAGNUM MINING EXP |
Selective Insurance and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selective Insurance and MAGNUM MINING
The main advantage of trading using opposite Selective Insurance and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selective Insurance 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.| Selective Insurance vs. The Progressive | Selective Insurance vs. Fairfax Financial Holdings | Selective Insurance vs. Insurance Australia Group |
| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
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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