Correlation Between AECOM TECHNOLOGY and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY and MAGNUM MINING 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 AECOM TECHNOLOGY and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM TECHNOLOGY and MAGNUM MINING EXP, you can compare the effects of market volatilities on AECOM TECHNOLOGY and MAGNUM MINING 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 AECOM TECHNOLOGY with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and MAGNUM MINING.
Diversification Opportunities for AECOM TECHNOLOGY and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AECOM and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and MAGNUM MINING go up and down completely randomly.
Pair Corralation between AECOM TECHNOLOGY and MAGNUM MINING
If you would invest 7,765 in AECOM TECHNOLOGY on September 26, 2024 and sell it today you would earn a total of 2,535 from holding AECOM TECHNOLOGY or generate 32.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AECOM TECHNOLOGY vs. MAGNUM MINING EXP
Performance |
Timeline |
AECOM TECHNOLOGY |
MAGNUM MINING EXP |
AECOM TECHNOLOGY and MAGNUM MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AECOM TECHNOLOGY and MAGNUM MINING
The main advantage of trading using opposite AECOM TECHNOLOGY and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Microsoft | AECOM TECHNOLOGY vs. Microsoft |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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