Correlation Between Awaysis Capital and Magna International
Can any of the company-specific risk be diversified away by investing in both Awaysis Capital and Magna International 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 Awaysis Capital and Magna International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awaysis Capital and Magna International, you can compare the effects of market volatilities on Awaysis Capital and Magna International 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 Awaysis Capital with a short position of Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awaysis Capital and Magna International.
Diversification Opportunities for Awaysis Capital and Magna International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awaysis and Magna is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Awaysis Capital and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International and Awaysis Capital 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 Awaysis Capital are associated (or correlated) with Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of Awaysis Capital i.e., Awaysis Capital and Magna International go up and down completely randomly.
Pair Corralation between Awaysis Capital and Magna International
Given the investment horizon of 90 days Awaysis Capital is expected to generate 14.48 times more return on investment than Magna International. However, Awaysis Capital is 14.48 times more volatile than Magna International. It trades about 0.09 of its potential returns per unit of risk. Magna International is currently generating about -0.01 per unit of risk. If you would invest 34.00 in Awaysis Capital on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Awaysis Capital or generate 44.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awaysis Capital vs. Magna International
Performance |
| Timeline |
| Awaysis Capital |
| Magna International |
Awaysis Capital and Magna International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awaysis Capital and Magna International
The main advantage of trading using opposite Awaysis Capital and Magna International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awaysis Capital position performs unexpectedly, Magna International 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 Magna International will offset losses from the drop in Magna International's long position.| Awaysis Capital vs. Manaris Corp | Awaysis Capital vs. Green Planet Bio | Awaysis Capital vs. Continental Beverage Brands | Awaysis Capital vs. Opus Magnum Ameris |
| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
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 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.
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