Correlation Between Globex Mining and Magnachip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Globex Mining and Magnachip Semiconductor 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 Globex Mining and Magnachip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and Magnachip Semiconductor, you can compare the effects of market volatilities on Globex Mining and Magnachip Semiconductor 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 Globex Mining with a short position of Magnachip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and Magnachip Semiconductor.
Diversification Opportunities for Globex Mining and Magnachip Semiconductor
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globex and Magnachip is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and Magnachip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnachip Semiconductor and Globex 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 Globex Mining Enterprises are associated (or correlated) with Magnachip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnachip Semiconductor has no effect on the direction of Globex Mining i.e., Globex Mining and Magnachip Semiconductor go up and down completely randomly.
Pair Corralation between Globex Mining and Magnachip Semiconductor
Assuming the 90 days trading horizon Globex Mining Enterprises is expected to generate 0.97 times more return on investment than Magnachip Semiconductor. However, Globex Mining Enterprises is 1.03 times less risky than Magnachip Semiconductor. It trades about 0.15 of its potential returns per unit of risk. Magnachip Semiconductor is currently generating about -0.14 per unit of risk. If you would invest 84.00 in Globex Mining Enterprises on August 28, 2025 and sell it today you would earn a total of 21.00 from holding Globex Mining Enterprises or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globex Mining Enterprises vs. Magnachip Semiconductor
Performance |
| Timeline |
| Globex Mining Enterprises |
| Magnachip Semiconductor |
Globex Mining and Magnachip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globex Mining and Magnachip Semiconductor
The main advantage of trading using opposite Globex Mining and Magnachip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining position performs unexpectedly, Magnachip Semiconductor 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 Magnachip Semiconductor will offset losses from the drop in Magnachip Semiconductor's long position.| Globex Mining vs. Apple Inc | Globex Mining vs. Apple Inc | Globex Mining vs. Apple Inc | Globex Mining vs. Apple Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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