Correlation Between SCANDMEDICAL SOLDK and Magic Software
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK and Magic Software 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 SCANDMEDICAL SOLDK and Magic Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Magic Software Enterprises, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK and Magic Software 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 SCANDMEDICAL SOLDK with a short position of Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and Magic Software.
Diversification Opportunities for SCANDMEDICAL SOLDK and Magic Software
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDMEDICAL and Magic is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Magic Software Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Software Enter and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with Magic Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Software Enter has no effect on the direction of SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and Magic Software go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and Magic Software
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to under-perform the Magic Software. But the stock apears to be less risky and, when comparing its historical volatility, SCANDMEDICAL SOLDK 040 is 2.22 times less risky than Magic Software. The stock trades about -0.53 of its potential returns per unit of risk. The Magic Software Enterprises is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Magic Software Enterprises on September 28, 2024 and sell it today you would earn a total of 102.00 from holding Magic Software Enterprises or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Magic Software Enterprises
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Magic Software Enter |
SCANDMEDICAL SOLDK and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and Magic Software
The main advantage of trading using opposite SCANDMEDICAL SOLDK and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK position performs unexpectedly, Magic Software 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 Magic Software will offset losses from the drop in Magic Software's long position.| SCANDMEDICAL SOLDK vs. Abbott Laboratories | SCANDMEDICAL SOLDK vs. Medtronic PLC | SCANDMEDICAL SOLDK vs. Siemens Healthineers AG | SCANDMEDICAL SOLDK vs. Edwards Lifesciences |
| Magic Software vs. GALENA MINING LTD | Magic Software vs. MCEWEN MINING INC | Magic Software vs. WIZZ AIR HLDGUNSPADR4 | Magic Software vs. GRIFFIN MINING LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |