Correlation Between EAT WELL and MGIC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both EAT WELL and MGIC INVESTMENT 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 EAT WELL and MGIC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and MGIC INVESTMENT, you can compare the effects of market volatilities on EAT WELL and MGIC INVESTMENT 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 EAT WELL with a short position of MGIC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and MGIC INVESTMENT.
Diversification Opportunities for EAT WELL and MGIC INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and MGIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and MGIC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC INVESTMENT and EAT WELL 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 EAT WELL INVESTMENT are associated (or correlated) with MGIC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC INVESTMENT has no effect on the direction of EAT WELL i.e., EAT WELL and MGIC INVESTMENT go up and down completely randomly.
Pair Corralation between EAT WELL and MGIC INVESTMENT
Assuming the 90 days trading horizon EAT WELL is expected to generate 9.35 times less return on investment than MGIC INVESTMENT. In addition to that, EAT WELL is 1.54 times more volatile than MGIC INVESTMENT. It trades about 0.01 of its total potential returns per unit of risk. MGIC INVESTMENT is currently generating about 0.13 per unit of volatility. If you would invest 1,434 in MGIC INVESTMENT on August 31, 2024 and sell it today you would earn a total of 1,046 from holding MGIC INVESTMENT or generate 72.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. MGIC INVESTMENT
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| MGIC INVESTMENT |
EAT WELL and MGIC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and MGIC INVESTMENT
The main advantage of trading using opposite EAT WELL and MGIC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL position performs unexpectedly, MGIC INVESTMENT 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 MGIC INVESTMENT will offset losses from the drop in MGIC INVESTMENT's long position.| EAT WELL vs. Ameriprise Financial | EAT WELL vs. Ares Management Corp | EAT WELL vs. Superior Plus Corp | EAT WELL vs. NMI Holdings |
| MGIC INVESTMENT vs. SIVERS SEMICONDUCTORS AB | MGIC INVESTMENT vs. Darden Restaurants | MGIC INVESTMENT vs. Reliance Steel Aluminum | MGIC INVESTMENT vs. Q2M Managementberatung AG |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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