Correlation Between Magic Internet and EOSDAC
Can any of the company-specific risk be diversified away by investing in both Magic Internet and EOSDAC 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 Magic Internet and EOSDAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Internet Money and EOSDAC, you can compare the effects of market volatilities on Magic Internet and EOSDAC 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 Magic Internet with a short position of EOSDAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Internet and EOSDAC.
Diversification Opportunities for Magic Internet and EOSDAC
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magic and EOSDAC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Magic Internet Money and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and Magic Internet 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 Magic Internet Money are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of Magic Internet i.e., Magic Internet and EOSDAC go up and down completely randomly.
Pair Corralation between Magic Internet and EOSDAC
Assuming the 90 days trading horizon Magic Internet is expected to generate 2.51 times less return on investment than EOSDAC. But when comparing it to its historical volatility, Magic Internet Money is 8.38 times less risky than EOSDAC. It trades about 0.21 of its potential returns per unit of risk. EOSDAC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.03 in EOSDAC on November 4, 2024 and sell it today you would earn a total of 0.00 from holding EOSDAC or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Internet Money vs. EOSDAC
Performance |
| Timeline |
| Magic Internet Money |
| EOSDAC |
Magic Internet and EOSDAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Internet and EOSDAC
The main advantage of trading using opposite Magic Internet and EOSDAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Internet position performs unexpectedly, EOSDAC 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 EOSDAC will offset losses from the drop in EOSDAC's long position.| Magic Internet vs. XRP | Magic Internet vs. Solana | Magic Internet vs. Sui | Magic Internet vs. Staked Ether |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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