Correlation Between Magna International and SOCGEN
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By analyzing existing cross correlation between Magna International and SOCGEN 425 14 APR 25, you can compare the effects of market volatilities on Magna International and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and SOCGEN.
Diversification Opportunities for Magna International and SOCGEN
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Magna and SOCGEN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and SOCGEN 425 14 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 425 14 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 425 14 has no effect on the direction of Magna International i.e., Magna International and SOCGEN go up and down completely randomly.
Pair Corralation between Magna International and SOCGEN
Considering the 90-day investment horizon Magna International is expected to under-perform the SOCGEN. In addition to that, Magna International is 4.68 times more volatile than SOCGEN 425 14 APR 25. It trades about -0.04 of its total potential returns per unit of risk. SOCGEN 425 14 APR 25 is currently generating about -0.05 per unit of volatility. If you would invest 9,763 in SOCGEN 425 14 APR 25 on September 3, 2024 and sell it today you would lose (196.00) from holding SOCGEN 425 14 APR 25 or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 41.23% |
| Values | Daily Returns |
Magna International vs. SOCGEN 425 14 APR 25
Performance |
| Timeline |
| Magna International |
| SOCGEN 425 14 |
Magna International and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and SOCGEN
The main advantage of trading using opposite Magna International and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.| Magna International vs. Allison Transmission Holdings | Magna International vs. Aptiv PLC | Magna International vs. LKQ Corporation | Magna International vs. Lear Corporation |
| SOCGEN vs. Air Transport Services | SOCGEN vs. Topbuild Corp | SOCGEN vs. Newpark Resources | SOCGEN vs. Nok Airlines Public |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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