Correlation Between Majic Wheels and GiveMePower Corp
Can any of the company-specific risk be diversified away by investing in both Majic Wheels and GiveMePower Corp 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 Majic Wheels and GiveMePower Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Majic Wheels Corp and GiveMePower Corp, you can compare the effects of market volatilities on Majic Wheels and GiveMePower Corp 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 Majic Wheels with a short position of GiveMePower Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Majic Wheels and GiveMePower Corp.
Diversification Opportunities for Majic Wheels and GiveMePower Corp
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Majic and GiveMePower is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Majic Wheels Corp and GiveMePower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiveMePower Corp and Majic Wheels 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 Majic Wheels Corp are associated (or correlated) with GiveMePower Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiveMePower Corp has no effect on the direction of Majic Wheels i.e., Majic Wheels and GiveMePower Corp go up and down completely randomly.
Pair Corralation between Majic Wheels and GiveMePower Corp
If you would invest 0.01 in Majic Wheels Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Majic Wheels Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Majic Wheels Corp vs. GiveMePower Corp
Performance |
| Timeline |
| Majic Wheels Corp |
| GiveMePower Corp |
Majic Wheels and GiveMePower Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Majic Wheels and GiveMePower Corp
The main advantage of trading using opposite Majic Wheels and GiveMePower Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Majic Wheels position performs unexpectedly, GiveMePower Corp 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 GiveMePower Corp will offset losses from the drop in GiveMePower Corp's long position.| Majic Wheels vs. Houston Natural Resources | Majic Wheels vs. BluMetric Environmental | Majic Wheels vs. Ecoloclean Industrs | Majic Wheels vs. BQE Water |
| GiveMePower Corp vs. Axis Technologies Group | GiveMePower Corp vs. Vortex Brands Co | GiveMePower Corp vs. Sysorex | GiveMePower Corp vs. XTRA Bitcoin |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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