Correlation Between Magna Terra and Accord Financial
Can any of the company-specific risk be diversified away by investing in both Magna Terra and Accord Financial 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 Terra and Accord Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Terra Minerals and Accord Financial Corp, you can compare the effects of market volatilities on Magna Terra and Accord Financial 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 Terra with a short position of Accord Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Terra and Accord Financial.
Diversification Opportunities for Magna Terra and Accord Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and Accord is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Magna Terra Minerals and Accord Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accord Financial Corp and Magna Terra 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 Terra Minerals are associated (or correlated) with Accord Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accord Financial Corp has no effect on the direction of Magna Terra i.e., Magna Terra and Accord Financial go up and down completely randomly.
Pair Corralation between Magna Terra and Accord Financial
Assuming the 90 days horizon Magna Terra Minerals is expected to generate 0.88 times more return on investment than Accord Financial. However, Magna Terra Minerals is 1.13 times less risky than Accord Financial. It trades about 0.17 of its potential returns per unit of risk. Accord Financial Corp is currently generating about -0.11 per unit of risk. If you would invest 10.00 in Magna Terra Minerals on September 9, 2025 and sell it today you would earn a total of 6.00 from holding Magna Terra Minerals or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Magna Terra Minerals vs. Accord Financial Corp
Performance |
| Timeline |
| Magna Terra Minerals |
| Accord Financial Corp |
Magna Terra and Accord Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Terra and Accord Financial
The main advantage of trading using opposite Magna Terra and Accord Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Terra position performs unexpectedly, Accord Financial 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 Accord Financial will offset losses from the drop in Accord Financial's long position.| Magna Terra vs. Sama Resources | Magna Terra vs. Stria Lithium | Magna Terra vs. Silver Bull Resources | Magna Terra vs. SPC Nickel Corp |
| Accord Financial vs. TDb Split Corp | Accord Financial vs. Lions Bay Capital | Accord Financial vs. Bankers Petroleum | Accord Financial vs. Bitcoin Well |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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