Correlation Between Magna International and SCHWAB
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By analyzing existing cross correlation between Magna International and SCHWAB CHARLES P, you can compare the effects of market volatilities on Magna International and SCHWAB 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 SCHWAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and SCHWAB.
Diversification Opportunities for Magna International and SCHWAB
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and SCHWAB is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and SCHWAB CHARLES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHWAB CHARLES P 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 SCHWAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHWAB CHARLES P has no effect on the direction of Magna International i.e., Magna International and SCHWAB go up and down completely randomly.
Pair Corralation between Magna International and SCHWAB
Considering the 90-day investment horizon Magna International is expected to under-perform the SCHWAB. In addition to that, Magna International is 7.92 times more volatile than SCHWAB CHARLES P. It trades about -0.03 of its total potential returns per unit of risk. SCHWAB CHARLES P is currently generating about 0.04 per unit of volatility. If you would invest 9,588 in SCHWAB CHARLES P on December 4, 2024 and sell it today you would earn a total of 406.00 from holding SCHWAB CHARLES P or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 87.95% |
| Values | Daily Returns |
Magna International vs. SCHWAB CHARLES P
Performance |
| Timeline |
| Magna International |
| SCHWAB CHARLES P |
Magna International and SCHWAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and SCHWAB
The main advantage of trading using opposite Magna International and SCHWAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, SCHWAB 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 SCHWAB will offset losses from the drop in SCHWAB's long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
| SCHWAB vs. Viemed Healthcare | SCHWAB vs. Alto Neuroscience, | SCHWAB vs. Apogee Therapeutics, Common | SCHWAB vs. Regeneron Pharmaceuticals |
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 Stocks Directory module to find actively traded stocks across global markets.
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