Correlation Between Ximen Mining and Minaurum Gold

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

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

Diversification Opportunities for Ximen Mining and Minaurum Gold

0.76

Correlation Coefficient

Ximen Mining  Minaurum Gold

Poor diversification

The 3 months correlation between Ximen and Minaurum is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum Gold and Ximen 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 Ximen Mining Corp are associated (or correlated) with Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Ximen Mining i.e., Ximen Mining and Minaurum Gold go up and down completely randomly.

Pair Corralation between Ximen Mining and Minaurum Gold

Assuming the 90 days horizon Ximen Mining Corp is expected to generate 9.05 times more return on investment than Minaurum Gold. However, Ximen Mining is 9.05 times more volatile than Minaurum Gold. It trades about 0.12 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.03 per unit of risk. If you would invest  65.00  in Ximen Mining Corp on October 22, 2024 and sell it today you would lose (58.00) from holding Ximen Mining Corp or give up 89.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.34%
Values	Daily Returns

Ximen Mining Corp  vs.  Minaurum Gold

Ximen Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ximen Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Minaurum Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minaurum Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Ximen Mining and Minaurum Gold

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

The idea behind Ximen Mining Corp and Minaurum Gold 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.