Correlation Between Globex Mining and Hampton Financial
Can any of the company-specific risk be diversified away by investing in both Globex Mining and Hampton Financial 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 Globex Mining and Hampton Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and Hampton Financial Corp, you can compare the effects of market volatilities on Globex Mining and Hampton Financial 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 Globex Mining with a short position of Hampton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and Hampton Financial.
Diversification Opportunities for Globex Mining and Hampton Financial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globex and Hampton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and Hampton Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hampton Financial Corp and Globex Mining 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 Globex Mining Enterprises are associated (or correlated) with Hampton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hampton Financial Corp has no effect on the direction of Globex Mining i.e., Globex Mining and Hampton Financial go up and down completely randomly.
Pair Corralation between Globex Mining and Hampton Financial
Assuming the 90 days trading horizon Globex Mining Enterprises is expected to generate 1.32 times more return on investment than Hampton Financial. However, Globex Mining is 1.32 times more volatile than Hampton Financial Corp. It trades about 0.22 of its potential returns per unit of risk. Hampton Financial Corp is currently generating about 0.03 per unit of risk. If you would invest 84.00 in Globex Mining Enterprises on September 25, 2024 and sell it today you would earn a total of 33.00 from holding Globex Mining Enterprises or generate 39.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Globex Mining Enterprises vs. Hampton Financial Corp
Performance |
Timeline |
Globex Mining Enterprises |
Hampton Financial Corp |
Globex Mining and Hampton Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Globex Mining and Hampton Financial
The main advantage of trading using opposite Globex Mining and Hampton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining position performs unexpectedly, Hampton Financial 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 Hampton Financial will offset losses from the drop in Hampton Financial's long position.Globex Mining vs. Monarca Minerals | Globex Mining vs. Outcrop Gold Corp | Globex Mining vs. Grande Portage Resources | Globex Mining vs. Klondike Silver Corp |
Hampton Financial vs. Diamond Estates Wines | Hampton Financial vs. Tree Island Steel | Hampton Financial vs. NextSource Materials | Hampton Financial vs. Globex Mining Enterprises |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |