Correlation Between MAGNA INTL and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both MAGNA INTL and MOVIE GAMES 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 MAGNA INTL and MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNA INTL and MOVIE GAMES SA, you can compare the effects of market volatilities on MAGNA INTL and MOVIE GAMES 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 MAGNA INTL with a short position of MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNA INTL and MOVIE GAMES.
Diversification Opportunities for MAGNA INTL and MOVIE GAMES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNA and MOVIE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNA INTL and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA and MAGNA INTL 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 MAGNA INTL are associated (or correlated) with MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of MAGNA INTL i.e., MAGNA INTL and MOVIE GAMES go up and down completely randomly.
Pair Corralation between MAGNA INTL and MOVIE GAMES
If you would invest 371.00 in MOVIE GAMES SA on January 11, 2025 and sell it today you would earn a total of 4.00 from holding MOVIE GAMES SA or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
MAGNA INTL vs. MOVIE GAMES SA
Performance |
| Timeline |
| MAGNA INTL |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| MOVIE GAMES SA |
MAGNA INTL and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNA INTL and MOVIE GAMES
The main advantage of trading using opposite MAGNA INTL and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNA INTL position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| MAGNA INTL vs. Cleanaway Waste Management | MAGNA INTL vs. CORNISH METALS INC | MAGNA INTL vs. Value Management Research | MAGNA INTL vs. NORTHEAST UTILITIES |
| MOVIE GAMES vs. MAGNUM MINING EXP | MOVIE GAMES vs. Zijin Mining Group | MOVIE GAMES vs. SERI INDUSTRIAL EO | MOVIE GAMES vs. CORNISH METALS INC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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