Correlation Between MGIC INVESTMENT and Quebecor
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and Quebecor, you can compare the effects of market volatilities on MGIC INVESTMENT and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Quebecor.
Diversification Opportunities for MGIC INVESTMENT and Quebecor
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MGIC and Quebecor is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Quebecor go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Quebecor
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to under-perform the Quebecor. In addition to that, MGIC INVESTMENT is 1.53 times more volatile than Quebecor. It trades about -0.31 of its total potential returns per unit of risk. Quebecor is currently generating about 0.21 per unit of volatility. If you would invest 2,200 in Quebecor on December 11, 2024 and sell it today you would earn a total of 100.00 from holding Quebecor or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Quebecor
Performance |
| Timeline |
| MGIC INVESTMENT |
| Quebecor |
MGIC INVESTMENT and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Quebecor
The main advantage of trading using opposite MGIC INVESTMENT and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| MGIC INVESTMENT vs. ALBIS LEASING AG | MGIC INVESTMENT vs. Air Lease | MGIC INVESTMENT vs. PREMIER FOODS | MGIC INVESTMENT vs. Sixt Leasing SE |
| Quebecor vs. High Liner Foods | Quebecor vs. Elmos Semiconductor SE | Quebecor vs. Urban Outfitters | Quebecor vs. Thai Beverage 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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