Correlation Between Magnite and DigiCom Berhad
Can any of the company-specific risk be diversified away by investing in both Magnite and DigiCom Berhad 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 DigiCom Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and DigiCom Berhad, you can compare the effects of market volatilities on Magnite and DigiCom Berhad 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 DigiCom Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and DigiCom Berhad.
Diversification Opportunities for Magnite and DigiCom Berhad
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Magnite and DigiCom is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and DigiCom Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiCom Berhad 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 DigiCom Berhad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiCom Berhad has no effect on the direction of Magnite i.e., Magnite and DigiCom Berhad go up and down completely randomly.
Pair Corralation between Magnite and DigiCom Berhad
If you would invest 1,271 in Magnite on September 1, 2024 and sell it today you would earn a total of 408.00 from holding Magnite or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
Magnite vs. DigiCom Berhad
Performance |
| Timeline |
| Magnite |
| DigiCom Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magnite and DigiCom Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and DigiCom Berhad
The main advantage of trading using opposite Magnite and DigiCom Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, DigiCom Berhad 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 DigiCom Berhad will offset losses from the drop in DigiCom Berhad's long position.| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
| DigiCom Berhad vs. China Tontine Wines | DigiCom Berhad vs. Uber Technologies | DigiCom Berhad vs. Oatly Group AB | DigiCom Berhad vs. Diageo PLC ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |