Correlation Between Maggie Beer and Magellan Financial
Can any of the company-specific risk be diversified away by investing in both Maggie Beer 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 Maggie Beer and Magellan Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maggie Beer Holdings and Magellan Financial Group, you can compare the effects of market volatilities on Maggie Beer 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 Maggie Beer with a short position of Magellan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and Magellan Financial.
Diversification Opportunities for Maggie Beer and Magellan Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maggie and Magellan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and Magellan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Financial and Maggie Beer 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 Maggie Beer Holdings 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 Maggie Beer i.e., Maggie Beer and Magellan Financial go up and down completely randomly.
Pair Corralation between Maggie Beer and Magellan Financial
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 0.99 times more return on investment than Magellan Financial. However, Maggie Beer Holdings is 1.01 times less risky than Magellan Financial. It trades about 0.09 of its potential returns per unit of risk. Magellan Financial Group is currently generating about 0.01 per unit of risk. If you would invest 5.70 in Maggie Beer Holdings on November 7, 2024 and sell it today you would earn a total of 0.30 from holding Maggie Beer Holdings or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Maggie Beer Holdings vs. Magellan Financial Group
Performance |
| Timeline |
| Maggie Beer Holdings |
| Magellan Financial |
Maggie Beer and Magellan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maggie Beer and Magellan Financial
The main advantage of trading using opposite Maggie Beer and Magellan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer 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.| Maggie Beer vs. Mach7 Technologies | Maggie Beer vs. Rare Foods Australia | Maggie Beer vs. Advanced Braking Technology | Maggie Beer vs. Sports Entertainment Group |
| Magellan Financial vs. BKI Investment | Magellan Financial vs. Clime Investment Management | Magellan Financial vs. Sandon Capital Investments | Magellan Financial vs. Pinnacle Investment Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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