Correlation Between MINCO SILVER and CONTAGIOUS GAMING
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and CONTAGIOUS GAMING INC, you can compare the effects of market volatilities on MINCO SILVER and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and CONTAGIOUS GAMING.
Diversification Opportunities for MINCO SILVER and CONTAGIOUS GAMING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MINCO and CONTAGIOUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and CONTAGIOUS GAMING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONTAGIOUS GAMING INC 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 CONTAGIOUS GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONTAGIOUS GAMING INC has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and CONTAGIOUS GAMING go up and down completely randomly.
Pair Corralation between MINCO SILVER and CONTAGIOUS GAMING
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 90.67 times less return on investment than CONTAGIOUS GAMING. But when comparing it to its historical volatility, MINCO SILVER is 24.37 times less risky than CONTAGIOUS GAMING. It trades about 0.04 of its potential returns per unit of risk. CONTAGIOUS GAMING INC is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.70 in CONTAGIOUS GAMING INC on October 27, 2024 and sell it today you would lose (0.40) from holding CONTAGIOUS GAMING INC or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. CONTAGIOUS GAMING INC
Performance |
| Timeline |
| MINCO SILVER |
| CONTAGIOUS GAMING INC |
MINCO SILVER and CONTAGIOUS GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and CONTAGIOUS GAMING
The main advantage of trading using opposite MINCO SILVER and CONTAGIOUS GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, CONTAGIOUS GAMING 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 CONTAGIOUS GAMING will offset losses from the drop in CONTAGIOUS GAMING's long position.| MINCO SILVER vs. BJs Restaurants | MINCO SILVER vs. STGEORGE MINING LTD | MINCO SILVER vs. Yanzhou Coal Mining | MINCO SILVER vs. Aya Gold Silver |
| CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. Take Two Interactive Software | CONTAGIOUS GAMING vs. Aristocrat Leisure Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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