Correlation Between MAGIC SOFTWARE and KTL GLOBAL
Can any of the company-specific risk be diversified away by investing in both MAGIC SOFTWARE and KTL GLOBAL 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 KTL GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGIC SOFTWARE ENTR and KTL GLOBAL, you can compare the effects of market volatilities on MAGIC SOFTWARE and KTL GLOBAL 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 KTL GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGIC SOFTWARE and KTL GLOBAL.
Diversification Opportunities for MAGIC SOFTWARE and KTL GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGIC and KTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGIC SOFTWARE ENTR and KTL GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTL GLOBAL 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 ENTR are associated (or correlated) with KTL GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTL GLOBAL has no effect on the direction of MAGIC SOFTWARE i.e., MAGIC SOFTWARE and KTL GLOBAL go up and down completely randomly.
Pair Corralation between MAGIC SOFTWARE and KTL GLOBAL
If you would invest 1,052 in MAGIC SOFTWARE ENTR on October 12, 2024 and sell it today you would earn a total of 58.00 from holding MAGIC SOFTWARE ENTR or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGIC SOFTWARE ENTR vs. KTL GLOBAL
Performance |
| Timeline |
| MAGIC SOFTWARE ENTR |
| KTL GLOBAL |
MAGIC SOFTWARE and KTL GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGIC SOFTWARE and KTL GLOBAL
The main advantage of trading using opposite MAGIC SOFTWARE and KTL GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGIC SOFTWARE position performs unexpectedly, KTL GLOBAL 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 KTL GLOBAL will offset losses from the drop in KTL GLOBAL's long position.| MAGIC SOFTWARE vs. Fast Retailing Co | MAGIC SOFTWARE vs. SLR Investment Corp | MAGIC SOFTWARE vs. SALESFORCE INC CDR | MAGIC SOFTWARE vs. FLOW TRADERS LTD |
| KTL GLOBAL vs. MICRONIC MYDATA | KTL GLOBAL vs. Magic Software Enterprises | KTL GLOBAL vs. INFORMATION SVC GRP | KTL GLOBAL vs. MAGIC SOFTWARE ENTR |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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