Correlation Between Magna Mining and NETCLASS TECHNOLOGY

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

By analyzing existing cross correlation between Magna Mining and NETCLASS TECHNOLOGY INC, you can compare the effects of market volatilities on Magna Mining and NETCLASS TECHNOLOGY 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 NETCLASS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and NETCLASS TECHNOLOGY.

Diversification Opportunities for Magna Mining and NETCLASS TECHNOLOGY

0.14

Correlation Coefficient

Magna Mining  NETCLASS TECHNOLOGY

Average diversification

The 3 months correlation between Magna and NETCLASS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and NETCLASS TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETCLASS TECHNOLOGY INC 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 NETCLASS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETCLASS TECHNOLOGY INC has no effect on the direction of Magna Mining i.e., Magna Mining and NETCLASS TECHNOLOGY go up and down completely randomly.

Pair Corralation between Magna Mining and NETCLASS TECHNOLOGY

Assuming the 90 days horizon Magna Mining is expected to generate 0.91 times more return on investment than NETCLASS TECHNOLOGY. However, Magna Mining is 1.09 times less risky than NETCLASS TECHNOLOGY. It trades about 0.05 of its potential returns per unit of risk. NETCLASS TECHNOLOGY INC is currently generating about -0.18 per unit of risk. If you would invest  183.00  in Magna Mining on September 2, 2025 and sell it today you would earn a total of  13.00  from holding Magna Mining or generate 7.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Magna Mining  vs.  NETCLASS TECHNOLOGY INC

Magna Mining

Risk-Adjusted Performance

Soft

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 unsteady basic indicators, Magna Mining may actually be approaching a critical reversion point that can send shares even higher in January 2026.

NETCLASS TECHNOLOGY INC

Risk-Adjusted Performance

Weakest

Over the last 90 days NETCLASS TECHNOLOGY INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Magna Mining and NETCLASS TECHNOLOGY

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

The idea behind Magna Mining and NETCLASS TECHNOLOGY INC 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.