Correlation Between Mangazeya Mining and FREEPORT

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

By analyzing existing cross correlation between Mangazeya Mining and FREEPORT MCMORAN INC 4375, you can compare the effects of market volatilities on Mangazeya Mining and FREEPORT 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 Mangazeya Mining with a short position of FREEPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangazeya Mining and FREEPORT.

Diversification Opportunities for Mangazeya Mining and FREEPORT

0.0

Correlation Coefficient

Mangazeya Mining  FREEPORT

Pay attention - limited upside

The 3 months correlation between Mangazeya and FREEPORT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mangazeya Mining and FREEPORT MCMORAN INC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREEPORT MCMORAN INC and Mangazeya 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 Mangazeya Mining are associated (or correlated) with FREEPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREEPORT MCMORAN INC has no effect on the direction of Mangazeya Mining i.e., Mangazeya Mining and FREEPORT go up and down completely randomly.

Pair Corralation between Mangazeya Mining and FREEPORT

If you would invest  9,412  in FREEPORT MCMORAN INC 4375 on October 3, 2024 and sell it today you would lose (94.00) from holding FREEPORT MCMORAN INC 4375 or give up 1.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.25%
Values	Daily Returns

Mangazeya Mining  vs.  FREEPORT MCMORAN INC 4375

Mangazeya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mangazeya Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mangazeya Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FREEPORT MCMORAN INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FREEPORT MCMORAN INC 4375 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FREEPORT MCMORAN INC 4375 investors.

Pair Trading with Mangazeya Mining and FREEPORT

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

The idea behind Mangazeya Mining and FREEPORT MCMORAN INC 4375 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.