Correlation Between Magnis Energy and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Magnis Energy and Dow Jones 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 Magnis Energy and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnis Energy Technologies and Dow Jones Industrial, you can compare the effects of market volatilities on Magnis Energy and Dow Jones 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 Magnis Energy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnis Energy and Dow Jones.
Diversification Opportunities for Magnis Energy and Dow Jones
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Magnis and Dow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Magnis Energy Technologies and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Magnis Energy 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 Magnis Energy Technologies are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Magnis Energy i.e., Magnis Energy and Dow Jones go up and down completely randomly.
Pair Corralation between Magnis Energy and Dow Jones
Assuming the 90 days horizon Magnis Energy Technologies is expected to generate 22.22 times more return on investment than Dow Jones. However, Magnis Energy is 22.22 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 25.00 in Magnis Energy Technologies on August 29, 2024 and sell it today you would lose (22.10) from holding Magnis Energy Technologies or give up 88.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnis Energy Technologies vs. Dow Jones Industrial
Performance |
| Timeline |
Magnis Energy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Magnis Energy Technologies
Pair trading matchups for Magnis Energy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Magnis Energy and Dow Jones
The main advantage of trading using opposite Magnis Energy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnis Energy position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Magnis Energy vs. Novonix Ltd ADR | Magnis Energy vs. Ilika plc | Magnis Energy vs. FuelPositive Corp | Magnis Energy vs. Novonix |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |