Correlation Between Land Homes and Magellan Financial
Can any of the company-specific risk be diversified away by investing in both Land Homes and Magellan Financial 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 Land Homes and Magellan Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land Homes Group and Magellan Financial Group, you can compare the effects of market volatilities on Land Homes and Magellan Financial 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 Land Homes with a short position of Magellan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land Homes and Magellan Financial.
Diversification Opportunities for Land Homes and Magellan Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Land and Magellan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Land Homes Group and Magellan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Financial and Land Homes 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 Land Homes Group are associated (or correlated) with Magellan Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magellan Financial has no effect on the direction of Land Homes i.e., Land Homes and Magellan Financial go up and down completely randomly.
Pair Corralation between Land Homes and Magellan Financial
Assuming the 90 days trading horizon Land Homes is expected to generate 2.48 times less return on investment than Magellan Financial. But when comparing it to its historical volatility, Land Homes Group is 1.32 times less risky than Magellan Financial. It trades about 0.02 of its potential returns per unit of risk. Magellan Financial Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 745.00 in Magellan Financial Group on November 2, 2024 and sell it today you would earn a total of 393.00 from holding Magellan Financial Group or generate 52.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Land Homes Group vs. Magellan Financial Group
Performance |
| Timeline |
| Land Homes Group |
| Magellan Financial |
Land Homes and Magellan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land Homes and Magellan Financial
The main advantage of trading using opposite Land Homes and Magellan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land Homes position performs unexpectedly, Magellan Financial 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 Magellan Financial will offset losses from the drop in Magellan Financial's long position.| Land Homes vs. Platinum Asia Investments | Land Homes vs. Technology One | Land Homes vs. Alternative Investment Trust | Land Homes vs. Dug Technology |
| Magellan Financial vs. Hutchison Telecommunications | Magellan Financial vs. Ainsworth Game Technology | Magellan Financial vs. Aeon Metals | Magellan Financial vs. Sky Metals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |