Correlation Between Magic Empire and MARA HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Magic Empire and MARA HOLDINGS 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 Magic Empire and MARA HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Empire Global and MARA HOLDINGS INC, you can compare the effects of market volatilities on Magic Empire and MARA HOLDINGS 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 Magic Empire with a short position of MARA HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Empire and MARA HOLDINGS.
Diversification Opportunities for Magic Empire and MARA HOLDINGS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magic and MARA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Magic Empire Global and MARA HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARA HOLDINGS INC and Magic Empire 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 Magic Empire Global are associated (or correlated) with MARA HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARA HOLDINGS INC has no effect on the direction of Magic Empire i.e., Magic Empire and MARA HOLDINGS go up and down completely randomly.
Pair Corralation between Magic Empire and MARA HOLDINGS
Given the investment horizon of 90 days Magic Empire Global is expected to generate 3.89 times more return on investment than MARA HOLDINGS. However, Magic Empire is 3.89 times more volatile than MARA HOLDINGS INC. It trades about 0.05 of its potential returns per unit of risk. MARA HOLDINGS INC is currently generating about -0.06 per unit of risk. If you would invest 56.00 in Magic Empire Global on November 4, 2024 and sell it today you would lose (2.00) from holding Magic Empire Global or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Magic Empire Global vs. MARA HOLDINGS INC
Performance |
| Timeline |
| Magic Empire Global |
| MARA HOLDINGS INC |
Magic Empire and MARA HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Empire and MARA HOLDINGS
The main advantage of trading using opposite Magic Empire and MARA HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Empire position performs unexpectedly, MARA HOLDINGS 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 MARA HOLDINGS will offset losses from the drop in MARA HOLDINGS's long position.| Magic Empire vs. Netcapital | Magic Empire vs. Applied Digital | Magic Empire vs. Zhong Yang Financial | Magic Empire vs. Mercurity Fintech Holding |
| MARA HOLDINGS vs. Hut 8 Corp | MARA HOLDINGS vs. CleanSpark | MARA HOLDINGS vs. Bit Digital | MARA HOLDINGS vs. Bitfarms |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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