Correlation Between Magellan Financial and Kneomedia
Can any of the company-specific risk be diversified away by investing in both Magellan Financial and Kneomedia 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 Magellan Financial and Kneomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magellan Financial Group and Kneomedia, you can compare the effects of market volatilities on Magellan Financial and Kneomedia 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 Magellan Financial with a short position of Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magellan Financial and Kneomedia.
Diversification Opportunities for Magellan Financial and Kneomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magellan and Kneomedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magellan Financial Group and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia and Magellan Financial 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 Magellan Financial Group are associated (or correlated) with Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of Magellan Financial i.e., Magellan Financial and Kneomedia go up and down completely randomly.
Pair Corralation between Magellan Financial and Kneomedia
Assuming the 90 days trading horizon Magellan Financial Group is expected to generate 0.29 times more return on investment than Kneomedia. However, Magellan Financial Group is 3.41 times less risky than Kneomedia. It trades about 0.07 of its potential returns per unit of risk. Kneomedia is currently generating about 0.01 per unit of risk. If you would invest 788.00 in Magellan Financial Group on September 3, 2024 and sell it today you would earn a total of 283.00 from holding Magellan Financial Group or generate 35.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magellan Financial Group vs. Kneomedia
Performance |
| Timeline |
| Magellan Financial |
| Kneomedia |
Magellan Financial and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magellan Financial and Kneomedia
The main advantage of trading using opposite Magellan Financial and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magellan Financial position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| Magellan Financial vs. Audio Pixels Holdings | Magellan Financial vs. Iodm | Magellan Financial vs. TTG Fintech | Magellan Financial vs. Mantle Minerals Limited |
| Kneomedia vs. Encounter Resources | Kneomedia vs. Tlou Energy | Kneomedia vs. Superior Resources | Kneomedia vs. Peel Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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