Correlation Between MAGNUM MINING and CITIC Securities

Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING and CITIC Securities 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 CITIC Securities 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 CITIC Securities, you can compare the effects of market volatilities on MAGNUM MINING and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and CITIC Securities.

Diversification Opportunities for MAGNUM MINING and CITIC Securities

0.0

Correlation Coefficient

MAGNUM MINING  CITIC Securities

Pay attention - limited upside

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

Pair Corralation between MAGNUM MINING and CITIC Securities

If you would invest  6.08  in MAGNUM MINING EXP on October 10, 2024 and sell it today you would earn a total of  0.00  from holding MAGNUM MINING EXP or generate 0.0% 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.  CITIC Securities

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

CITIC Securities

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Securities are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CITIC Securities reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MAGNUM MINING and CITIC Securities

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

The idea behind MAGNUM MINING EXP and CITIC Securities 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.