Correlation Between Magic Empire and Top KingWin
Can any of the company-specific risk be diversified away by investing in both Magic Empire and Top KingWin 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 Top KingWin 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 Top KingWin Ltd, you can compare the effects of market volatilities on Magic Empire and Top KingWin 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 Top KingWin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Empire and Top KingWin.
Diversification Opportunities for Magic Empire and Top KingWin
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Magic and Top is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Magic Empire Global and Top KingWin Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin 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 Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of Magic Empire i.e., Magic Empire and Top KingWin go up and down completely randomly.
Pair Corralation between Magic Empire and Top KingWin
If you would invest 46.00 in Magic Empire Global on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Magic Empire Global or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Magic Empire Global vs. Top KingWin Ltd
Performance |
| Timeline |
| Magic Empire Global |
| Top KingWin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Magic Empire and Top KingWin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Empire and Top KingWin
The main advantage of trading using opposite Magic Empire and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Empire position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin's long position.| Magic Empire vs. Netcapital | Magic Empire vs. Applied Blockchain | Magic Empire vs. Zhong Yang Financial | Magic Empire vs. Mercurity Fintech Holding |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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