Correlation Between Magna Mining and Baytex Energy
Can any of the company-specific risk be diversified away by investing in both Magna Mining and Baytex Energy 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 Baytex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Mining and Baytex Energy Corp, you can compare the effects of market volatilities on Magna Mining and Baytex Energy 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 Baytex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Baytex Energy.
Diversification Opportunities for Magna Mining and Baytex Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magna and Baytex is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Baytex Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baytex Energy Corp 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 Baytex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baytex Energy Corp has no effect on the direction of Magna Mining i.e., Magna Mining and Baytex Energy go up and down completely randomly.
Pair Corralation between Magna Mining and Baytex Energy
Assuming the 90 days horizon Magna Mining is expected to generate 3.77 times less return on investment than Baytex Energy. In addition to that, Magna Mining is 1.06 times more volatile than Baytex Energy Corp. It trades about 0.04 of its total potential returns per unit of risk. Baytex Energy Corp is currently generating about 0.15 per unit of volatility. If you would invest 236.00 in Baytex Energy Corp on September 10, 2025 and sell it today you would earn a total of 81.00 from holding Baytex Energy Corp or generate 34.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magna Mining vs. Baytex Energy Corp
Performance |
| Timeline |
| Magna Mining |
| Baytex Energy Corp |
Magna Mining and Baytex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Mining and Baytex Energy
The main advantage of trading using opposite Magna Mining and Baytex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Mining position performs unexpectedly, Baytex Energy 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 Baytex Energy will offset losses from the drop in Baytex Energy's long position.| Magna Mining vs. NorthIsle Copper and | Magna Mining vs. TIMIA Capital Corp | Magna Mining vs. Metro Mining Limited | Magna Mining vs. Worry Free Holdings |
| Baytex Energy vs. Calumet Specialty Products | Baytex Energy vs. Talos Energy | Baytex Energy vs. Northern Oil Gas | Baytex Energy vs. Enerflex |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |