Correlation Between Easy Software and MAG Silver
Can any of the company-specific risk be diversified away by investing in both Easy Software and MAG Silver 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 Easy Software and MAG Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and MAG Silver Corp, you can compare the effects of market volatilities on Easy Software and MAG Silver 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 Easy Software with a short position of MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and MAG Silver.
Diversification Opportunities for Easy Software and MAG Silver
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Easy and MAG is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp and Easy Software 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 Easy Software AG are associated (or correlated) with MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of Easy Software i.e., Easy Software and MAG Silver go up and down completely randomly.
Pair Corralation between Easy Software and MAG Silver
Assuming the 90 days trading horizon Easy Software AG is expected to generate 1.68 times more return on investment than MAG Silver. However, Easy Software is 1.68 times more volatile than MAG Silver Corp. It trades about 0.22 of its potential returns per unit of risk. MAG Silver Corp is currently generating about -0.09 per unit of risk. If you would invest 1,630 in Easy Software AG on October 16, 2024 and sell it today you would earn a total of 230.00 from holding Easy Software AG or generate 14.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. MAG Silver Corp
Performance |
| Timeline |
| Easy Software AG |
| MAG Silver Corp |
Easy Software and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and MAG Silver
The main advantage of trading using opposite Easy Software and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.| Easy Software vs. Motorcar Parts of | Easy Software vs. GRUPO CARSO A1 | Easy Software vs. CN DATANG C | Easy Software vs. ITALIAN WINE BRANDS |
| MAG Silver vs. Global Ship Lease | MAG Silver vs. ALBIS LEASING AG | MAG Silver vs. GigaMedia | MAG Silver vs. DETALION GAMES SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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