Correlation Between 51Talk Online and Magnite
Can any of the company-specific risk be diversified away by investing in both 51Talk Online and Magnite 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 51Talk Online and Magnite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and Magnite, you can compare the effects of market volatilities on 51Talk Online and Magnite 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 51Talk Online with a short position of Magnite. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and Magnite.
Diversification Opportunities for 51Talk Online and Magnite
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 51Talk and Magnite is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and Magnite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnite and 51Talk Online 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 51Talk Online Education are associated (or correlated) with Magnite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnite has no effect on the direction of 51Talk Online i.e., 51Talk Online and Magnite go up and down completely randomly.
Pair Corralation between 51Talk Online and Magnite
Considering the 90-day investment horizon 51Talk Online Education is expected to under-perform the Magnite. But the stock apears to be less risky and, when comparing its historical volatility, 51Talk Online Education is 2.85 times less risky than Magnite. The stock trades about -0.01 of its potential returns per unit of risk. The Magnite is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,610 in Magnite on November 3, 2024 and sell it today you would earn a total of 110.00 from holding Magnite or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. Magnite
Performance |
| Timeline |
| 51Talk Online Education |
| Magnite |
51Talk Online and Magnite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and Magnite
The main advantage of trading using opposite 51Talk Online and Magnite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online position performs unexpectedly, Magnite 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 Magnite will offset losses from the drop in Magnite's long position.| 51Talk Online vs. Wah Fu Education | 51Talk Online vs. Four Seasons Education | 51Talk Online vs. Sunlands Technology Group | 51Talk Online vs. China Liberal Education |
| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
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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