Correlation Between Entree Resources and Magna Mining
Can any of the company-specific risk be diversified away by investing in both Entree Resources and Magna Mining 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 Entree Resources and Magna Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entree Resources and Magna Mining, you can compare the effects of market volatilities on Entree Resources and Magna Mining 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 Entree Resources with a short position of Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entree Resources and Magna Mining.
Diversification Opportunities for Entree Resources and Magna Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Entree and Magna is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Entree Resources and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining and Entree Resources 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 Entree Resources are associated (or correlated) with Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of Entree Resources i.e., Entree Resources and Magna Mining go up and down completely randomly.
Pair Corralation between Entree Resources and Magna Mining
Assuming the 90 days trading horizon Entree Resources is expected to generate 0.57 times more return on investment than Magna Mining. However, Entree Resources is 1.74 times less risky than Magna Mining. It trades about 0.02 of its potential returns per unit of risk. Magna Mining is currently generating about 0.0 per unit of risk. If you would invest 227.00 in Entree Resources on September 12, 2025 and sell it today you would earn a total of 3.00 from holding Entree Resources or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Entree Resources vs. Magna Mining
Performance |
| Timeline |
| Entree Resources |
| Magna Mining |
Entree Resources and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entree Resources and Magna Mining
The main advantage of trading using opposite Entree Resources and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entree Resources position performs unexpectedly, Magna Mining 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| Entree Resources vs. NorthIsle Copper and | Entree Resources vs. Benz Mining Corp | Entree Resources vs. Ecora Resources plc | Entree Resources vs. Meridian Mining UK |
| Magna Mining vs. Titan Mining Corp | Magna Mining vs. NorthIsle Copper and | Magna Mining vs. Entree Resources | Magna Mining vs. Western Copper and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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