Correlation Between MGIC Investment and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and ACCSYS TECHPLC 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 MGIC Investment and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC Investment and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on MGIC Investment and ACCSYS TECHPLC 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 MGIC Investment with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and ACCSYS TECHPLC.
Diversification Opportunities for MGIC Investment and ACCSYS TECHPLC
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between MGIC and ACCSYS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and MGIC Investment 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 MGIC Investment are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of MGIC Investment i.e., MGIC Investment and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between MGIC Investment and ACCSYS TECHPLC
Assuming the 90 days horizon MGIC Investment is expected to generate 0.63 times more return on investment than ACCSYS TECHPLC. However, MGIC Investment is 1.59 times less risky than ACCSYS TECHPLC. It trades about 0.15 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.05 per unit of risk. If you would invest 2,280 in MGIC Investment on October 23, 2024 and sell it today you would earn a total of 80.00 from holding MGIC Investment or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
MGIC Investment vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| MGIC Investment |
| ACCSYS TECHPLC EO |
MGIC Investment and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and ACCSYS TECHPLC
The main advantage of trading using opposite MGIC Investment and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| MGIC Investment vs. Beazer Homes USA | MGIC Investment vs. VARIOUS EATERIES LS | MGIC Investment vs. Hyatt Hotels | MGIC Investment vs. Playa Hotels Resorts |
| ACCSYS TECHPLC vs. Svenska Cellulosa Aktiebolaget | ACCSYS TECHPLC vs. SVENSKA CELLULO B | ACCSYS TECHPLC vs. Svenska Cellulosa Aktiebolaget | ACCSYS TECHPLC vs. West Fraser Timber |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |