Correlation Between MGIC INVESTMENT and Sporttotal
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT and Sporttotal 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 Sporttotal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and Sporttotal AG, you can compare the effects of market volatilities on MGIC INVESTMENT and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Sporttotal.
Diversification Opportunities for MGIC INVESTMENT and Sporttotal
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Sporttotal is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal AG 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Sporttotal go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Sporttotal
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to generate 0.34 times more return on investment than Sporttotal. However, MGIC INVESTMENT is 2.9 times less risky than Sporttotal. It trades about 0.54 of its potential returns per unit of risk. Sporttotal AG is currently generating about -0.27 per unit of risk. If you would invest 2,167 in MGIC INVESTMENT on September 3, 2024 and sell it today you would earn a total of 313.00 from holding MGIC INVESTMENT or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Sporttotal AG
Performance |
| Timeline |
| MGIC INVESTMENT |
| Sporttotal AG |
MGIC INVESTMENT and Sporttotal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Sporttotal
The main advantage of trading using opposite MGIC INVESTMENT and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.| MGIC INVESTMENT vs. TOTAL GABON | MGIC INVESTMENT vs. Walgreens Boots Alliance | MGIC INVESTMENT vs. Peak Resources Limited |
| Sporttotal vs. TOTAL GABON | Sporttotal vs. Walgreens Boots Alliance | Sporttotal vs. Peak Resources Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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