Correlation Between Magnite and PS Business
Can any of the company-specific risk be diversified away by investing in both Magnite and PS Business 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 PS Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and PS Business Parks, you can compare the effects of market volatilities on Magnite and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and PS Business.
Diversification Opportunities for Magnite and PS Business
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnite and PSBYP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Magnite i.e., Magnite and PS Business go up and down completely randomly.
Pair Corralation between Magnite and PS Business
If you would invest 967.00 in Magnite on September 14, 2024 and sell it today you would earn a total of 671.00 from holding Magnite or generate 69.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Magnite vs. PS Business Parks
Performance |
| Timeline |
| Magnite |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magnite and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and PS Business
The main advantage of trading using opposite Magnite and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
| PS Business vs. Heritage Distilling Holding | PS Business vs. Cumulus Media Class | PS Business vs. Thai Beverage PCL | PS Business vs. Keurig Dr Pepper |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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