Correlation Between Magic Software and MediPress Health
Can any of the company-specific risk be diversified away by investing in both Magic Software and MediPress Health 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 MediPress Health 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 MediPress Health Limited Partnership, you can compare the effects of market volatilities on Magic Software and MediPress Health 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 MediPress Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and MediPress Health.
Diversification Opportunities for Magic Software and MediPress Health
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magic and MediPress is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and MediPress Health Limited Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediPress Health Lim 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 MediPress Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediPress Health Lim has no effect on the direction of Magic Software i.e., Magic Software and MediPress Health go up and down completely randomly.
Pair Corralation between Magic Software and MediPress Health
Assuming the 90 days trading horizon Magic Software Enterprises is expected to under-perform the MediPress Health. In addition to that, Magic Software is 1.1 times more volatile than MediPress Health Limited Partnership. It trades about -0.05 of its total potential returns per unit of risk. MediPress Health Limited Partnership is currently generating about 0.38 per unit of volatility. If you would invest 6,600 in MediPress Health Limited Partnership on August 30, 2024 and sell it today you would earn a total of 1,070 from holding MediPress Health Limited Partnership or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Magic Software Enterprises vs. MediPress Health Limited Partn
Performance |
| Timeline |
| Magic Software Enter |
| MediPress Health Lim |
Magic Software and MediPress Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and MediPress Health
The main advantage of trading using opposite Magic Software and MediPress Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, MediPress Health 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 MediPress Health will offset losses from the drop in MediPress Health's long position.| Magic Software vs. Matrix | Magic Software vs. Tower Semiconductor | Magic Software vs. B Communications | Magic Software vs. Petrochemical |
| MediPress Health vs. Nice | MediPress Health vs. The Gold Bond | MediPress Health vs. Bank Leumi Le Israel | MediPress Health vs. ICL Israel Chemicals |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |