Correlation Between Mirriad Advertising and Magnite
Can any of the company-specific risk be diversified away by investing in both Mirriad Advertising and Magnite 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 Mirriad Advertising and Magnite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirriad Advertising plc and Magnite, you can compare the effects of market volatilities on Mirriad Advertising and Magnite 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 Mirriad Advertising with a short position of Magnite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirriad Advertising and Magnite.
Diversification Opportunities for Mirriad Advertising and Magnite
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirriad and Magnite is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mirriad Advertising plc and Magnite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnite and Mirriad Advertising 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 Mirriad Advertising plc are associated (or correlated) with Magnite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnite has no effect on the direction of Mirriad Advertising i.e., Mirriad Advertising and Magnite go up and down completely randomly.
Pair Corralation between Mirriad Advertising and Magnite
Assuming the 90 days horizon Mirriad Advertising plc is expected to under-perform the Magnite. In addition to that, Mirriad Advertising is 1.93 times more volatile than Magnite. It trades about -0.02 of its total potential returns per unit of risk. Magnite is currently generating about 0.04 per unit of volatility. If you would invest 1,141 in Magnite on September 2, 2024 and sell it today you would earn a total of 538.00 from holding Magnite or generate 47.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mirriad Advertising plc vs. Magnite
Performance |
| Timeline |
| Mirriad Advertising plc |
| Magnite |
Mirriad Advertising and Magnite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirriad Advertising and Magnite
The main advantage of trading using opposite Mirriad Advertising and Magnite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirriad Advertising position performs unexpectedly, Magnite 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 Magnite will offset losses from the drop in Magnite's long position.| Mirriad Advertising vs. Beyond Commerce | Mirriad Advertising vs. Baosheng Media Group | Mirriad Advertising vs. MGO Global Common | Mirriad Advertising vs. CMG Holdings Group |
| Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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