Correlation Between Magna Mining and Ellsworth Growth

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

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

Diversification Opportunities for Magna Mining and Ellsworth Growth

-0.06

Correlation Coefficient

Magna Mining  Ellsworth Growth

Good diversification

The 3 months correlation between Magna and Ellsworth is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Ellsworth Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Growth and Magna 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 Magna Mining are associated (or correlated) with Ellsworth Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Growth has no effect on the direction of Magna Mining i.e., Magna Mining and Ellsworth Growth go up and down completely randomly.

Pair Corralation between Magna Mining and Ellsworth Growth

Assuming the 90 days horizon Magna Mining is expected to generate 6.57 times more return on investment than Ellsworth Growth. However, Magna Mining is 6.57 times more volatile than Ellsworth Growth and. It trades about 0.04 of its potential returns per unit of risk. Ellsworth Growth and is currently generating about -0.02 per unit of risk. If you would invest  108.00  in Magna Mining on March 6, 2025 and sell it today you would earn a total of  7.00  from holding Magna Mining or generate 6.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Magna Mining  vs.  Ellsworth Growth and

Magna Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Magna Mining are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Magna Mining may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Ellsworth Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ellsworth Growth and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Ellsworth Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Magna Mining and Ellsworth Growth

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

The idea behind Magna Mining and Ellsworth Growth and 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.