Correlation Between 00108WAF7 and Magellan Gold
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By analyzing existing cross correlation between AEP TEX INC and Magellan Gold Corp, you can compare the effects of market volatilities on 00108WAF7 and Magellan Gold 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 00108WAF7 with a short position of Magellan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Magellan Gold.
Diversification Opportunities for 00108WAF7 and Magellan Gold
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 00108WAF7 and Magellan is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Magellan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Gold Corp and 00108WAF7 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 AEP TEX INC are associated (or correlated) with Magellan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magellan Gold Corp has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Magellan Gold go up and down completely randomly.
Pair Corralation between 00108WAF7 and Magellan Gold
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 0.54 times more return on investment than Magellan Gold. However, AEP TEX INC is 1.84 times less risky than Magellan Gold. It trades about 0.27 of its potential returns per unit of risk. Magellan Gold Corp is currently generating about -0.06 per unit of risk. If you would invest 7,420 in AEP TEX INC on August 28, 2024 and sell it today you would earn a total of 801.00 from holding AEP TEX INC or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
AEP TEX INC vs. Magellan Gold Corp
Performance |
| Timeline |
| AEP TEX INC |
| Magellan Gold Corp |
00108WAF7 and Magellan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Magellan Gold
The main advantage of trading using opposite 00108WAF7 and Magellan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Magellan Gold 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 Magellan Gold will offset losses from the drop in Magellan Gold's long position.| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. Dupont De Nemours | 00108WAF7 vs. The Travelers Companies | 00108WAF7 vs. Exxon Mobil Corp |
| Magellan Gold vs. Morningstar Unconstrained Allocation | Magellan Gold vs. High Yield Municipal Fund | Magellan Gold vs. Knife River | Magellan Gold vs. Klckner Co SE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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