Correlation Between Magnite and CP ALL
Can any of the company-specific risk be diversified away by investing in both Magnite and CP ALL 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 Magnite and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and CP ALL Public, you can compare the effects of market volatilities on Magnite and CP ALL 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 Magnite with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and CP ALL.
Diversification Opportunities for Magnite and CP ALL
Very good diversification
The 3 months correlation between Magnite and CVPBF is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Magnite 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 Magnite are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Magnite i.e., Magnite and CP ALL go up and down completely randomly.
Pair Corralation between Magnite and CP ALL
Given the investment horizon of 90 days Magnite is expected to generate 1.2 times more return on investment than CP ALL. However, Magnite is 1.2 times more volatile than CP ALL Public. It trades about 0.08 of its potential returns per unit of risk. CP ALL Public is currently generating about -0.22 per unit of risk. If you would invest 1,630 in Magnite on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Magnite or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnite vs. CP ALL Public
Performance |
| Timeline |
| Magnite |
| CP ALL Public |
Magnite and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and CP ALL
The main advantage of trading using opposite Magnite and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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