Correlation Between Magna International and Airspan Networks
Can any of the company-specific risk be diversified away by investing in both Magna International and Airspan Networks 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 Airspan Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna International and Airspan Networks Holdings, you can compare the effects of market volatilities on Magna International and Airspan Networks 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 Airspan Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and Airspan Networks.
Diversification Opportunities for Magna International and Airspan Networks
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Magna and Airspan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and Airspan Networks Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airspan Networks Holdings 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 Airspan Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airspan Networks Holdings has no effect on the direction of Magna International i.e., Magna International and Airspan Networks go up and down completely randomly.
Pair Corralation between Magna International and Airspan Networks
Considering the 90-day investment horizon Magna International is expected to under-perform the Airspan Networks. But the stock apears to be less risky and, when comparing its historical volatility, Magna International is 103.58 times less risky than Airspan Networks. The stock trades about 0.0 of its potential returns per unit of risk. The Airspan Networks Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Airspan Networks Holdings on September 14, 2024 and sell it today you would earn a total of 0.21 from holding Airspan Networks Holdings or generate 525.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.68% |
| Values | Daily Returns |
Magna International vs. Airspan Networks Holdings
Performance |
| Timeline |
| Magna International |
| Airspan Networks Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magna International and Airspan Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and Airspan Networks
The main advantage of trading using opposite Magna International and Airspan Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, Airspan Networks 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 Airspan Networks will offset losses from the drop in Airspan Networks' long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
| Airspan Networks vs. Viemed Healthcare | Airspan Networks vs. Marine Products | Airspan Networks vs. PACCAR Inc | Airspan Networks vs. Magna International |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |