Correlation Between Magna International and CT Real
Can any of the company-specific risk be diversified away by investing in both Magna International and CT Real 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 International and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna International and CT Real Estate, you can compare the effects of market volatilities on Magna International and CT Real 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 International with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and CT Real.
Diversification Opportunities for Magna International and CT Real
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magna and CTRRF is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and Magna International 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 International are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Magna International i.e., Magna International and CT Real go up and down completely randomly.
Pair Corralation between Magna International and CT Real
If you would invest 4,152 in Magna International on September 2, 2024 and sell it today you would earn a total of 362.00 from holding Magna International or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Magna International vs. CT Real Estate
Performance |
| Timeline |
| Magna International |
| CT Real Estate |
Magna International and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and CT Real
The main advantage of trading using opposite Magna International and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
| CT Real vs. Firm Capital Property | CT Real vs. Smart REIT | CT Real vs. Slate Grocery REIT | CT Real vs. Phillips Edison Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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