Correlation Between MAGIC SOFTWARE and BetterU Education
Can any of the company-specific risk be diversified away by investing in both MAGIC SOFTWARE and BetterU Education 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 BetterU Education 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 betterU Education Corp, you can compare the effects of market volatilities on MAGIC SOFTWARE and BetterU Education 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 BetterU Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGIC SOFTWARE and BetterU Education.
Diversification Opportunities for MAGIC SOFTWARE and BetterU Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGIC and BetterU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGIC SOFTWARE ENTR and betterU Education Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on betterU Education Corp 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 BetterU Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of betterU Education Corp has no effect on the direction of MAGIC SOFTWARE i.e., MAGIC SOFTWARE and BetterU Education go up and down completely randomly.
Pair Corralation between MAGIC SOFTWARE and BetterU Education
If you would invest 1,130 in MAGIC SOFTWARE ENTR on November 8, 2024 and sell it today you would earn a total of 120.00 from holding MAGIC SOFTWARE ENTR or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
MAGIC SOFTWARE ENTR vs. betterU Education Corp
Performance |
| Timeline |
| MAGIC SOFTWARE ENTR |
| betterU Education Corp |
MAGIC SOFTWARE and BetterU Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGIC SOFTWARE and BetterU Education
The main advantage of trading using opposite MAGIC SOFTWARE and BetterU Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGIC SOFTWARE position performs unexpectedly, BetterU Education 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 BetterU Education will offset losses from the drop in BetterU Education's long position.| MAGIC SOFTWARE vs. Summit Hotel Properties | MAGIC SOFTWARE vs. Choice Hotels International | MAGIC SOFTWARE vs. MELIA HOTELS | MAGIC SOFTWARE vs. CHINA TONTINE WINES |
| BetterU Education vs. QBE Insurance Group | BetterU Education vs. Columbia Sportswear | BetterU Education vs. PLAYTIKA HOLDING DL 01 | BetterU Education vs. PLAYTECH |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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