Correlation Between MGIC INVESTMENT and SCANDION ONC
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT and SCANDION ONC 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 SCANDION ONC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and SCANDION ONC DK 0735, you can compare the effects of market volatilities on MGIC INVESTMENT and SCANDION ONC 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 SCANDION ONC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and SCANDION ONC.
Diversification Opportunities for MGIC INVESTMENT and SCANDION ONC
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MGIC and SCANDION is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and SCANDION ONC DK 0735 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDION ONC DK 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 SCANDION ONC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDION ONC DK has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and SCANDION ONC go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and SCANDION ONC
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to generate 0.12 times more return on investment than SCANDION ONC. However, MGIC INVESTMENT is 8.44 times less risky than SCANDION ONC. It trades about 0.17 of its potential returns per unit of risk. SCANDION ONC DK 0735 is currently generating about -0.07 per unit of risk. If you would invest 1,927 in MGIC INVESTMENT on September 3, 2024 and sell it today you would earn a total of 553.00 from holding MGIC INVESTMENT or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. SCANDION ONC DK 0735
Performance |
| Timeline |
| MGIC INVESTMENT |
| SCANDION ONC DK |
MGIC INVESTMENT and SCANDION ONC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and SCANDION ONC
The main advantage of trading using opposite MGIC INVESTMENT and SCANDION ONC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, SCANDION ONC 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 SCANDION ONC will offset losses from the drop in SCANDION ONC's long position.| MGIC INVESTMENT vs. TOTAL GABON | MGIC INVESTMENT vs. Walgreens Boots Alliance | MGIC INVESTMENT vs. Peak Resources Limited |
| SCANDION ONC vs. CDL INVESTMENT | SCANDION ONC vs. NH HOTEL GROUP | SCANDION ONC vs. MGIC INVESTMENT | SCANDION ONC vs. HK Electric Investments |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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