Correlation Between Magic Software and Insuline Medical
Can any of the company-specific risk be diversified away by investing in both Magic Software and Insuline Medical 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 Magic Software and Insuline Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Software Enterprises and Insuline Medical, you can compare the effects of market volatilities on Magic Software and Insuline Medical 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 Magic Software with a short position of Insuline Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and Insuline Medical.
Diversification Opportunities for Magic Software and Insuline Medical
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magic and Insuline is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and Insuline Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insuline Medical and Magic Software 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 Magic Software Enterprises are associated (or correlated) with Insuline Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insuline Medical has no effect on the direction of Magic Software i.e., Magic Software and Insuline Medical go up and down completely randomly.
Pair Corralation between Magic Software and Insuline Medical
Assuming the 90 days trading horizon Magic Software Enterprises is expected to generate 0.64 times more return on investment than Insuline Medical. However, Magic Software Enterprises is 1.57 times less risky than Insuline Medical. It trades about 0.15 of its potential returns per unit of risk. Insuline Medical is currently generating about -0.11 per unit of risk. If you would invest 426,100 in Magic Software Enterprises on September 13, 2024 and sell it today you would earn a total of 31,600 from holding Magic Software Enterprises or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Software Enterprises vs. Insuline Medical
Performance |
| Timeline |
| Magic Software Enter |
| Insuline Medical |
Magic Software and Insuline Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and Insuline Medical
The main advantage of trading using opposite Magic Software and Insuline Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, Insuline Medical 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 Insuline Medical will offset losses from the drop in Insuline Medical's long position.| Magic Software vs. Sapiens International | Magic Software vs. AudioCodes | Magic Software vs. Matrix | Magic Software vs. Tower Semiconductor |
| Insuline Medical vs. Israel China Biotechnology | Insuline Medical vs. Clal Insurance Enterprises | Insuline Medical vs. Magic Software Enterprises | Insuline Medical vs. Homebiogas |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |