Correlation Between Magnite and Rent A
Can any of the company-specific risk be diversified away by investing in both Magnite and Rent A 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 Rent A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and Rent A Center, you can compare the effects of market volatilities on Magnite and Rent A 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 Rent A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and Rent A.
Diversification Opportunities for Magnite and Rent A
Very poor diversification
The 3 months correlation between Magnite and Rent is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and Rent A Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rent A Center 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 Rent A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rent A Center has no effect on the direction of Magnite i.e., Magnite and Rent A go up and down completely randomly.
Pair Corralation between Magnite and Rent A
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 Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Magnite vs. Rent A Center
Performance |
| Timeline |
| Magnite |
| Rent A Center |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magnite and Rent A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and Rent A
The main advantage of trading using opposite Magnite and Rent A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, Rent A 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 Rent A will offset losses from the drop in Rent A'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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