Correlation Between Contagious Gaming and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming and MagnaChip Semiconductor 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 Contagious Gaming and MagnaChip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and MagnaChip Semiconductor, you can compare the effects of market volatilities on Contagious Gaming and MagnaChip Semiconductor 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 Contagious Gaming with a short position of MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and MagnaChip Semiconductor.
Diversification Opportunities for Contagious Gaming and MagnaChip Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and MagnaChip is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and MagnaChip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor and Contagious Gaming 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 Contagious Gaming are associated (or correlated) with MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of Contagious Gaming i.e., Contagious Gaming and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between Contagious Gaming and MagnaChip Semiconductor
If you would invest 382.00 in MagnaChip Semiconductor on September 4, 2024 and sell it today you would earn a total of 62.00 from holding MagnaChip Semiconductor or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Contagious Gaming vs. MagnaChip Semiconductor
Performance |
| Timeline |
| Contagious Gaming |
| MagnaChip Semiconductor |
Contagious Gaming and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and MagnaChip Semiconductor
The main advantage of trading using opposite Contagious Gaming and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| Contagious Gaming vs. ArcelorMittal SA ADR | Contagious Gaming vs. Universal Music Group | Contagious Gaming vs. RBC Bearings Incorporated | Contagious Gaming vs. CECO Environmental Corp |
| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |