Correlation Between Magic Software and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both Magic Software and Nanjing Panda 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 Nanjing Panda 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 Nanjing Panda Electronics, you can compare the effects of market volatilities on Magic Software and Nanjing Panda 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 Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and Nanjing Panda.
Diversification Opportunities for Magic Software and Nanjing Panda
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magic and Nanjing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics 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 Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of Magic Software i.e., Magic Software and Nanjing Panda go up and down completely randomly.
Pair Corralation between Magic Software and Nanjing Panda
If you would invest 1,130 in Magic Software Enterprises on November 8, 2024 and sell it today you would earn a total of 80.00 from holding Magic Software Enterprises or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Magic Software Enterprises vs. Nanjing Panda Electronics
Performance |
| Timeline |
| Magic Software Enter |
| Nanjing Panda Electronics |
Magic Software and Nanjing Panda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and Nanjing Panda
The main advantage of trading using opposite Magic Software and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's long position.| Magic Software vs. GigaMedia | Magic Software vs. DATAGROUP SE | Magic Software vs. Scientific Games | Magic Software vs. Datadog |
| Nanjing Panda vs. HEMISPHERE EGY | Nanjing Panda vs. NAKED WINES PLC | Nanjing Panda vs. Calibre Mining Corp | Nanjing Panda vs. Zijin Mining 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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