Correlation Between Magic Software and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Magic Software and Bollor SE 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 Bollor SE 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 Bollor SE, you can compare the effects of market volatilities on Magic Software and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and Bollor SE.
Diversification Opportunities for Magic Software and Bollor SE
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Magic and Bollor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Magic Software i.e., Magic Software and Bollor SE go up and down completely randomly.
Pair Corralation between Magic Software and Bollor SE
Assuming the 90 days horizon Magic Software Enterprises is expected to generate 2.29 times more return on investment than Bollor SE. However, Magic Software is 2.29 times more volatile than Bollor SE. It trades about 0.17 of its potential returns per unit of risk. Bollor SE is currently generating about 0.01 per unit of risk. If you would invest 995.00 in Magic Software Enterprises on September 13, 2024 and sell it today you would earn a total of 195.00 from holding Magic Software Enterprises or generate 19.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Software Enterprises vs. Bollor SE
Performance |
| Timeline |
| Magic Software Enter |
| Bollor SE |
Magic Software and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and Bollor SE
The main advantage of trading using opposite Magic Software and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE'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 |
| Bollor SE vs. EAT WELL INVESTMENT | Bollor SE vs. REINET INVESTMENTS SCA | Bollor SE vs. Magic Software Enterprises | Bollor SE vs. CPU SOFTWAREHOUSE |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |