Correlation Between Truscott Mining and Maggie Beer

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

By analyzing existing cross correlation between Truscott Mining and Maggie Beer Holdings, you can compare the effects of market volatilities on Truscott Mining and Maggie Beer 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 Truscott Mining with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truscott Mining and Maggie Beer.

Diversification Opportunities for Truscott Mining and Maggie Beer

-0.49

Correlation Coefficient

Truscott Mining  Maggie Beer

Very good diversification

The 3 months correlation between Truscott and Maggie is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Truscott Mining and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Truscott 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 Truscott Mining are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Truscott Mining i.e., Truscott Mining and Maggie Beer go up and down completely randomly.

Pair Corralation between Truscott Mining and Maggie Beer

Assuming the 90 days trading horizon Truscott Mining is expected to under-perform the Maggie Beer. In addition to that, Truscott Mining is 1.03 times more volatile than Maggie Beer Holdings. It trades about -0.35 of its total potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.26 per unit of volatility. If you would invest  5.50  in Maggie Beer Holdings on March 31, 2025 and sell it today you would earn a total of  1.10  from holding Maggie Beer Holdings or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Truscott Mining  vs.  Maggie Beer Holdings

Truscott Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Truscott Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Maggie Beer Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maggie Beer Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Maggie Beer may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Truscott Mining and Maggie Beer

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

The idea behind Truscott Mining and Maggie Beer Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.