Correlation Between MAGNUM MINING and STRAYER EDUCATION

Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and STRAYER EDUCATION 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 MAGNUM MINING and STRAYER EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MAGNUM MINING EXP and STRAYER EDUCATION, you can compare the effects of market volatilities on MAGNUM MINING and STRAYER EDUCATION 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 MAGNUM MINING with a short position of STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and STRAYER EDUCATION.

Diversification Opportunities for MAGNUM MINING and STRAYER EDUCATION

0.0

Correlation Coefficient

MAGNUM MINING  STRAYER EDUCATION

Pay attention - limited upside

The 3 months correlation between MAGNUM and STRAYER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION and MAGNUM 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 MAGNUM MINING EXP are associated (or correlated) with STRAYER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAYER EDUCATION has no effect on the direction of MAGNUM MINING i.e., MAGNUM MINING and STRAYER EDUCATION go up and down completely randomly.

Pair Corralation between MAGNUM MINING and STRAYER EDUCATION

If you would invest  8,346  in STRAYER EDUCATION on September 20, 2024 and sell it today you would earn a total of  1,104  from holding STRAYER EDUCATION or generate 13.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MAGNUM MINING EXP  vs.  STRAYER EDUCATION

MAGNUM MINING EXP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAGNUM MINING EXP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MAGNUM MINING is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

STRAYER EDUCATION

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in STRAYER EDUCATION are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, STRAYER EDUCATION exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MAGNUM MINING and STRAYER EDUCATION

The main advantage of trading using opposite MAGNUM MINING and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, STRAYER EDUCATION 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 STRAYER EDUCATION will offset losses from the drop in STRAYER EDUCATION's long position.

The idea behind MAGNUM MINING EXP and STRAYER EDUCATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.