Correlation Between Hyrican Informationssyst and Magna International
Can any of the company-specific risk be diversified away by investing in both Hyrican Informationssyst 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 Hyrican Informationssyst and Magna International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyrican Informationssysteme Aktiengesellschaft and Magna International, you can compare the effects of market volatilities on Hyrican Informationssyst 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 Hyrican Informationssyst with a short position of Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and Magna International.
Diversification Opportunities for Hyrican Informationssyst and Magna International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyrican and Magna is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft 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 Hyrican Informationssyst i.e., Hyrican Informationssyst and Magna International go up and down completely randomly.
Pair Corralation between Hyrican Informationssyst and Magna International
Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 0.36 times more return on investment than Magna International. However, Hyrican Informationssysteme Aktiengesellschaft is 2.76 times less risky than Magna International. It trades about -0.19 of its potential returns per unit of risk. Magna International is currently generating about -0.13 per unit of risk. If you would invest 530.00 in Hyrican Informationssysteme Aktiengesellschaft on October 24, 2024 and sell it today you would lose (10.00) from holding Hyrican Informationssysteme Aktiengesellschaft or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyrican Informationssysteme Ak vs. Magna International
Performance |
| Timeline |
| Hyrican Informationssyst |
| Magna International |
Hyrican Informationssyst and Magna International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyrican Informationssyst and Magna International
The main advantage of trading using opposite Hyrican Informationssyst and Magna International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyrican Informationssyst 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.| Hyrican Informationssyst vs. Methode Electronics | Hyrican Informationssyst vs. ZhongAn Online P | Hyrican Informationssyst vs. ARROW ELECTRONICS | Hyrican Informationssyst vs. TT Electronics PLC |
| Magna International vs. GREENX METALS LTD | Magna International vs. FIREWEED METALS P | Magna International vs. Northern Data AG | Magna International vs. China Datang |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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