Correlation Between MAGNUM MINING and Baker Hughes

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and Baker Hughes 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 Baker Hughes 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 Baker Hughes Co, you can compare the effects of market volatilities on MAGNUM MINING and Baker Hughes 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 Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Baker Hughes.

Diversification Opportunities for MAGNUM MINING and Baker Hughes

MAGNUMBakerDiversified AwayMAGNUMBakerDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between MAGNUM MINING and Baker Hughes

If you would invest  3,165  in Baker Hughes Co on September 28, 2024 and sell it today you would earn a total of  685.00  from holding Baker Hughes Co or generate 21.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MAGNUM MINING EXP  vs.  Baker Hughes Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -5051015202530
JavaScript chart by amCharts 3.21.15M8Z 68V
       Timeline  
MAGNUM MINING EXP 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.0610.0615
Baker Hughes 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Baker Hughes Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Baker Hughes reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec323436384042

MAGNUM MINING and Baker Hughes Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15M8Z 68V
       Returns  

Pair Trading with MAGNUM MINING and Baker Hughes

The main advantage of trading using opposite MAGNUM MINING and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.
The idea behind MAGNUM MINING EXP and Baker Hughes Co 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.
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings