Correlation Between Magnite and AUTOMATIC
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By analyzing existing cross correlation between Magnite and AUTOMATIC DATA PROCESSING, you can compare the effects of market volatilities on Magnite and AUTOMATIC 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 AUTOMATIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and AUTOMATIC.
Diversification Opportunities for Magnite and AUTOMATIC
Excellent diversification
The 3 months correlation between Magnite and AUTOMATIC is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and AUTOMATIC DATA PROCESSING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTOMATIC DATA PROCESSING 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 AUTOMATIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTOMATIC DATA PROCESSING has no effect on the direction of Magnite i.e., Magnite and AUTOMATIC go up and down completely randomly.
Pair Corralation between Magnite and AUTOMATIC
Given the investment horizon of 90 days Magnite is expected to generate 2.84 times more return on investment than AUTOMATIC. However, Magnite is 2.84 times more volatile than AUTOMATIC DATA PROCESSING. It trades about 0.23 of its potential returns per unit of risk. AUTOMATIC DATA PROCESSING is currently generating about -0.12 per unit of risk. If you would invest 1,240 in Magnite on September 13, 2024 and sell it today you would earn a total of 450.00 from holding Magnite or generate 36.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Magnite vs. AUTOMATIC DATA PROCESSING
Performance |
| Timeline |
| Magnite |
| AUTOMATIC DATA PROCESSING |
Magnite and AUTOMATIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and AUTOMATIC
The main advantage of trading using opposite Magnite and AUTOMATIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, AUTOMATIC 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 AUTOMATIC will offset losses from the drop in AUTOMATIC's long position.| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
| AUTOMATIC vs. Biglari Holdings | AUTOMATIC vs. Boyd Gaming | AUTOMATIC vs. Magnite | AUTOMATIC vs. Dine Brands Global |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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