Correlation Between Magellan Financial and Saferoads Holdings
Can any of the company-specific risk be diversified away by investing in both Magellan Financial and Saferoads 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 Magellan Financial and Saferoads Holdings 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 Saferoads Holdings, you can compare the effects of market volatilities on Magellan Financial and Saferoads 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 Magellan Financial with a short position of Saferoads Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magellan Financial and Saferoads Holdings.
Diversification Opportunities for Magellan Financial and Saferoads Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magellan and Saferoads is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magellan Financial Group and Saferoads Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saferoads Holdings 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 Saferoads Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saferoads Holdings has no effect on the direction of Magellan Financial i.e., Magellan Financial and Saferoads Holdings go up and down completely randomly.
Pair Corralation between Magellan Financial and Saferoads Holdings
If you would invest 1,083 in Magellan Financial Group on September 25, 2024 and sell it today you would earn a total of 31.00 from holding Magellan Financial Group or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Magellan Financial Group vs. Saferoads Holdings
Performance |
| Timeline |
| Magellan Financial |
| Saferoads Holdings |
Magellan Financial and Saferoads Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magellan Financial and Saferoads Holdings
The main advantage of trading using opposite Magellan Financial and Saferoads Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magellan Financial position performs unexpectedly, Saferoads 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 Saferoads Holdings will offset losses from the drop in Saferoads Holdings' long position.| Magellan Financial vs. Aneka Tambang Tbk | Magellan Financial vs. Macquarie Group | Magellan Financial vs. Challenger | Magellan Financial vs. BHP Group Limited |
| Saferoads Holdings vs. Premier Investments | Saferoads Holdings vs. oOhMedia | Saferoads Holdings vs. MFF Capital Investments | Saferoads Holdings vs. Black Rock 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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