Correlation Between MAG Interactive and Rejlers AB
Can any of the company-specific risk be diversified away by investing in both MAG Interactive and Rejlers AB 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 MAG Interactive and Rejlers AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG Interactive AB and Rejlers AB, you can compare the effects of market volatilities on MAG Interactive and Rejlers AB 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 MAG Interactive with a short position of Rejlers AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG Interactive and Rejlers AB.
Diversification Opportunities for MAG Interactive and Rejlers AB
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MAG and Rejlers is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MAG Interactive AB and Rejlers AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rejlers AB and MAG Interactive 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 MAG Interactive AB are associated (or correlated) with Rejlers AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rejlers AB has no effect on the direction of MAG Interactive i.e., MAG Interactive and Rejlers AB go up and down completely randomly.
Pair Corralation between MAG Interactive and Rejlers AB
Assuming the 90 days trading horizon MAG Interactive AB is expected to under-perform the Rejlers AB. In addition to that, MAG Interactive is 1.29 times more volatile than Rejlers AB. It trades about -0.06 of its total potential returns per unit of risk. Rejlers AB is currently generating about 0.03 per unit of volatility. If you would invest 12,250 in Rejlers AB on August 26, 2024 and sell it today you would earn a total of 2,010 from holding Rejlers AB or generate 16.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG Interactive AB vs. Rejlers AB
Performance |
| Timeline |
| MAG Interactive AB |
| Rejlers AB |
MAG Interactive and Rejlers AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG Interactive and Rejlers AB
The main advantage of trading using opposite MAG Interactive and Rejlers AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG Interactive position performs unexpectedly, Rejlers AB 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 Rejlers AB will offset losses from the drop in Rejlers AB's long position.| MAG Interactive vs. Flexion Mobile PLC | MAG Interactive vs. iZafe Group AB | MAG Interactive vs. KABE Group AB | MAG Interactive vs. IAR Systems Group |
| Rejlers AB vs. MAG Interactive AB | Rejlers AB vs. Kambi Group PLC | Rejlers AB vs. Hexatronic Group AB | Rejlers AB vs. Integrum AB Series |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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