Correlation Between Magnite and Malaga Financial
Can any of the company-specific risk be diversified away by investing in both Magnite and Malaga Financial 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 Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and Malaga Financial, you can compare the effects of market volatilities on Magnite and Malaga Financial 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 Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and Malaga Financial.
Diversification Opportunities for Magnite and Malaga Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnite and Malaga is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial 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 Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of Magnite i.e., Magnite and Malaga Financial go up and down completely randomly.
Pair Corralation between Magnite and Malaga Financial
Given the investment horizon of 90 days Magnite is expected to generate 3.57 times more return on investment than Malaga Financial. However, Magnite is 3.57 times more volatile than Malaga Financial. It trades about 0.05 of its potential returns per unit of risk. Malaga Financial is currently generating about 0.04 per unit of risk. If you would invest 917.00 in Magnite on November 27, 2024 and sell it today you would earn a total of 852.00 from holding Magnite or generate 92.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.55% |
| Values | Daily Returns |
Magnite vs. Malaga Financial
Performance |
| Timeline |
| Magnite |
| Malaga Financial |
Magnite and Malaga Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and Malaga Financial
The main advantage of trading using opposite Magnite and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, Malaga Financial 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Criteo Sa |
| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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