Correlation Between Mako Mining and MBN

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

By analyzing existing cross correlation between Mako Mining Corp and MBN Corporation, you can compare the effects of market volatilities on Mako Mining and MBN 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 Mako Mining with a short position of MBN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and MBN.

Diversification Opportunities for Mako Mining and MBN

0.0

Correlation Coefficient

Mako Mining  MBN

Pay attention - limited upside

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

Pair Corralation between Mako Mining and MBN

If you would invest  301.00  in Mako Mining Corp on October 6, 2024 and sell it today you would earn a total of  44.00  from holding Mako Mining Corp or generate 14.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mako Mining Corp  vs.  MBN Corp.

Mako Mining Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mako Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mako Mining showed solid returns over the last few months and may actually be approaching a breakup point.

MBN Corporation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MBN Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, MBN is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mako Mining and MBN

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

The idea behind Mako Mining Corp and MBN Corporation 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 Commodity Directory module to find actively traded commodities issued by global exchanges.