Correlation Between MINCO SILVER and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and Advanced Medical 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 MINCO SILVER and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and Advanced Medical Solutions, you can compare the effects of market volatilities on MINCO SILVER and Advanced Medical 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 MINCO SILVER with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Advanced Medical.
Diversification Opportunities for MINCO SILVER and Advanced Medical
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MINCO and Advanced is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and MINCO SILVER 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 MINCO SILVER are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and Advanced Medical go up and down completely randomly.
Pair Corralation between MINCO SILVER and Advanced Medical
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 2.1 times more return on investment than Advanced Medical. However, MINCO SILVER is 2.1 times more volatile than Advanced Medical Solutions. It trades about 0.03 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about -0.14 per unit of risk. If you would invest 13.00 in MINCO SILVER on October 11, 2024 and sell it today you would earn a total of 0.00 from holding MINCO SILVER or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. Advanced Medical Solutions
Performance |
| Timeline |
| MINCO SILVER |
| Advanced Medical Sol |
MINCO SILVER and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and Advanced Medical
The main advantage of trading using opposite MINCO SILVER and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| MINCO SILVER vs. United Natural Foods | MINCO SILVER vs. TYSON FOODS A | MINCO SILVER vs. Harmony Gold Mining | MINCO SILVER vs. PREMIER FOODS |
| Advanced Medical vs. De Grey Mining | Advanced Medical vs. NXP Semiconductors NV | Advanced Medical vs. MINCO SILVER | Advanced Medical vs. Yanzhou Coal Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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