Correlation Between MAGNUM MINING and Magic Software
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING 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 MAGNUM MINING and Magic Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNUM MINING EXP and Magic Software Enterprises, you can compare the effects of market volatilities on MAGNUM MINING 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 MAGNUM MINING with a short position of Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Magic Software.
Diversification Opportunities for MAGNUM MINING and Magic Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Magic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP 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 MAGNUM MINING 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 MAGNUM MINING EXP 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 MAGNUM MINING i.e., MAGNUM MINING and Magic Software go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Magic Software
If you would invest 1,130 in Magic Software Enterprises on November 6, 2024 and sell it today you would earn a total of 70.00 from holding Magic Software Enterprises or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Magic Software Enterprises
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Magic Software Enter |
MAGNUM MINING and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Magic Software
The main advantage of trading using opposite MAGNUM MINING and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING 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.| MAGNUM MINING vs. ARDAGH METAL PACDL 0001 | MAGNUM MINING vs. Zijin Mining Group | MAGNUM MINING vs. Calibre Mining Corp | MAGNUM MINING vs. GALENA MINING LTD |
| Magic Software vs. Intuit Inc | Magic Software vs. Palo Alto Networks | Magic Software vs. Synopsys | Magic Software vs. Cadence Design Systems |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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