Correlation Between Magic Software and AXMIN
Can any of the company-specific risk be diversified away by investing in both Magic Software and AXMIN 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 AXMIN 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 AXMIN Inc, you can compare the effects of market volatilities on Magic Software and AXMIN 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 AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and AXMIN.
Diversification Opportunities for Magic Software and AXMIN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magic and AXMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc 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 AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of Magic Software i.e., Magic Software and AXMIN go up and down completely randomly.
Pair Corralation between Magic Software and AXMIN
Assuming the 90 days horizon Magic Software Enterprises is expected to generate 0.52 times more return on investment than AXMIN. However, Magic Software Enterprises is 1.92 times less risky than AXMIN. It trades about 0.03 of its potential returns per unit of risk. AXMIN Inc is currently generating about -0.01 per unit of risk. If you would invest 1,023 in Magic Software Enterprises on September 12, 2024 and sell it today you would earn a total of 107.00 from holding Magic Software Enterprises or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Software Enterprises vs. AXMIN Inc
Performance |
| Timeline |
| Magic Software Enter |
| AXMIN Inc |
Magic Software and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and AXMIN
The main advantage of trading using opposite Magic Software and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| Magic Software vs. Palo Alto Networks | Magic Software vs. HubSpot | Magic Software vs. Superior Plus Corp | Magic Software vs. SIVERS SEMICONDUCTORS AB |
| AXMIN vs. KINGBOARD CHEMICAL | AXMIN vs. Magic Software Enterprises | AXMIN vs. Siamgas And Petrochemicals | AXMIN vs. Quaker Chemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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