Correlation Between Mangazeya Mining and Allient

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

By analyzing existing cross correlation between Mangazeya Mining and Allient, you can compare the effects of market volatilities on Mangazeya Mining and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangazeya Mining and Allient.

Diversification Opportunities for Mangazeya Mining and Allient

0.0

Correlation Coefficient

Mangazeya Mining  Allient

Pay attention - limited upside

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

Pair Corralation between Mangazeya Mining and Allient

Assuming the 90 days horizon Mangazeya Mining is expected to generate 123.59 times more return on investment than Allient. However, Mangazeya Mining is 123.59 times more volatile than Allient. It trades about 0.21 of its potential returns per unit of risk. Allient is currently generating about -0.25 per unit of risk. If you would invest  0.00  in Mangazeya Mining on February 3, 2024 and sell it today you would earn a total of  0.00  from holding Mangazeya Mining or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Mangazeya Mining  vs.  Allient

Mangazeya Mining

Risk-Adjusted Performance

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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.

Allient

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Allient may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Mangazeya Mining and Allient

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

The idea behind Mangazeya Mining and Allient 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.