Correlation Between MGIC INVESTMENT and Traton SE
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By analyzing existing cross correlation between MGIC INVESTMENT and Traton SE, you can compare the effects of market volatilities on MGIC INVESTMENT and Traton SE 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 Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Traton SE.
Diversification Opportunities for MGIC INVESTMENT and Traton SE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Traton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE 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 Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Traton SE go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Traton SE
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to generate 0.79 times more return on investment than Traton SE. However, MGIC INVESTMENT is 1.27 times less risky than Traton SE. It trades about 0.09 of its potential returns per unit of risk. Traton SE is currently generating about -0.11 per unit of risk. If you would invest 2,280 in MGIC INVESTMENT on September 12, 2024 and sell it today you would earn a total of 60.00 from holding MGIC INVESTMENT or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Traton SE
Performance |
| Timeline |
| MGIC INVESTMENT |
| Traton SE |
MGIC INVESTMENT and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Traton SE
The main advantage of trading using opposite MGIC INVESTMENT and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc | MGIC INVESTMENT vs. Apple Inc |
| Traton SE vs. LANDSEA GREEN MANAGEMENT | Traton SE vs. Nordic Semiconductor ASA | Traton SE vs. Magnachip Semiconductor | Traton SE vs. NXP Semiconductors NV |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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