Correlation Between Magna Mining and Hampton Financial
Can any of the company-specific risk be diversified away by investing in both Magna 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 Magna 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 Magna Mining and Hampton Financial Corp, you can compare the effects of market volatilities on Magna 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 Magna Mining with a short position of Hampton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Hampton Financial.
Diversification Opportunities for Magna Mining and Hampton Financial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magna and Hampton is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining 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 Magna 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 Magna Mining 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 Magna Mining i.e., Magna Mining and Hampton Financial go up and down completely randomly.
Pair Corralation between Magna Mining and Hampton Financial
Assuming the 90 days trading horizon Magna Mining is expected to generate 1.52 times more return on investment than Hampton Financial. However, Magna Mining is 1.52 times more volatile than Hampton Financial Corp. It trades about 0.15 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 118.00 in Magna Mining on September 25, 2024 and sell it today you would earn a total of 27.00 from holding Magna Mining or generate 22.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.67% |
Values | Daily Returns |
Magna Mining vs. Hampton Financial Corp
Performance |
Timeline |
Magna Mining |
Hampton Financial Corp |
Magna Mining and Hampton Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Magna Mining and Hampton Financial
The main advantage of trading using opposite Magna Mining and Hampton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna 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.Magna Mining vs. Monarca Minerals | Magna Mining vs. Outcrop Gold Corp | Magna Mining vs. Grande Portage Resources | Magna 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |