Correlation Between MGIC INVESTMENT and Vestas Wind
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By analyzing existing cross correlation between MGIC INVESTMENT and Vestas Wind Systems, you can compare the effects of market volatilities on MGIC INVESTMENT and Vestas Wind 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 Vestas Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Vestas Wind.
Diversification Opportunities for MGIC INVESTMENT and Vestas Wind
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between MGIC and Vestas is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Vestas Wind Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestas Wind Systems 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 Vestas Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestas Wind Systems has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Vestas Wind go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Vestas Wind
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to generate 0.32 times more return on investment than Vestas Wind. However, MGIC INVESTMENT is 3.1 times less risky than Vestas Wind. It trades about 0.23 of its potential returns per unit of risk. Vestas Wind Systems is currently generating about -0.02 per unit of risk. If you would invest 2,260 in MGIC INVESTMENT on October 20, 2024 and sell it today you would earn a total of 100.00 from holding MGIC INVESTMENT or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Vestas Wind Systems
Performance |
| Timeline |
| MGIC INVESTMENT |
| Vestas Wind Systems |
MGIC INVESTMENT and Vestas Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Vestas Wind
The main advantage of trading using opposite MGIC INVESTMENT and Vestas Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Vestas Wind 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 Vestas Wind will offset losses from the drop in Vestas Wind's long position.| MGIC INVESTMENT vs. STEEL DYNAMICS | MGIC INVESTMENT vs. LG Display Co | MGIC INVESTMENT vs. InPlay Oil Corp | MGIC INVESTMENT vs. Siamgas And Petrochemicals |
| Vestas Wind vs. Cleanaway Waste Management | Vestas Wind vs. Waste Management | Vestas Wind vs. AGF Management Limited | Vestas Wind vs. Perdoceo Education |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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