Correlation Between Magic Software and KSB SE
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By analyzing existing cross correlation between Magic Software Enterprises and KSB SE Co, you can compare the effects of market volatilities on Magic Software and KSB 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 KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and KSB SE.
Diversification Opportunities for Magic Software and KSB SE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magic and KSB is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB 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 KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of Magic Software i.e., Magic Software and KSB SE go up and down completely randomly.
Pair Corralation between Magic Software and KSB SE
Assuming the 90 days horizon Magic Software Enterprises is expected to generate 2.36 times more return on investment than KSB SE. However, Magic Software is 2.36 times more volatile than KSB SE Co. It trades about 0.06 of its potential returns per unit of risk. KSB SE Co is currently generating about -0.02 per unit of risk. If you would invest 952.00 in Magic Software Enterprises on September 12, 2024 and sell it today you would earn a total of 178.00 from holding Magic Software Enterprises or generate 18.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Magic Software Enterprises vs. KSB SE Co
Performance |
| Timeline |
| Magic Software Enter |
| KSB SE |
Magic Software and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and KSB SE
The main advantage of trading using opposite Magic Software and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, KSB 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 KSB SE will offset losses from the drop in KSB 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 |
| KSB SE vs. SBI Insurance Group | KSB SE vs. Coeur Mining | KSB SE vs. Direct Line Insurance | KSB SE vs. Insurance Australia Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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