Correlation Between MGIC INVESTMENT and Sino Land
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT and Sino Land 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 Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and Sino Land, you can compare the effects of market volatilities on MGIC INVESTMENT and Sino Land 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 Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Sino Land.
Diversification Opportunities for MGIC INVESTMENT and Sino Land
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MGIC and Sino is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Sino Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land 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 Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Sino Land go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Sino Land
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to generate 1.26 times more return on investment than Sino Land. However, MGIC INVESTMENT is 1.26 times more volatile than Sino Land. It trades about 0.21 of its potential returns per unit of risk. Sino Land is currently generating about 0.04 per unit of risk. If you would invest 2,307 in MGIC INVESTMENT on August 29, 2024 and sell it today you would earn a total of 193.00 from holding MGIC INVESTMENT or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Sino Land
Performance |
| Timeline |
| MGIC INVESTMENT |
| Sino Land |
MGIC INVESTMENT and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Sino Land
The main advantage of trading using opposite MGIC INVESTMENT and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Sino Land 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 Sino Land will offset losses from the drop in Sino Land's long position.| MGIC INVESTMENT vs. SMA Solar Technology | MGIC INVESTMENT vs. Firan Technology Group | MGIC INVESTMENT vs. Vishay Intertechnology | MGIC INVESTMENT vs. Micron Technology |
| Sino Land vs. Lendlease Group | Sino Land vs. KENEDIX OFFICE INV | Sino Land vs. 24SEVENOFFICE GROUP AB | Sino Land vs. VARIOUS EATERIES LS |
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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