Correlation Between Magnis Energy and Hayward Holdings
Can any of the company-specific risk be diversified away by investing in both Magnis Energy and Hayward Holdings 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 Hayward Holdings 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 Hayward Holdings, you can compare the effects of market volatilities on Magnis Energy and Hayward Holdings 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 Hayward Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnis Energy and Hayward Holdings.
Diversification Opportunities for Magnis Energy and Hayward Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Magnis and Hayward is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Magnis Energy Technologies and Hayward Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hayward Holdings 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 Hayward Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hayward Holdings has no effect on the direction of Magnis Energy i.e., Magnis Energy and Hayward Holdings go up and down completely randomly.
Pair Corralation between Magnis Energy and Hayward Holdings
Assuming the 90 days horizon Magnis Energy Technologies is expected to generate 8.03 times more return on investment than Hayward Holdings. However, Magnis Energy is 8.03 times more volatile than Hayward Holdings. It trades about 0.08 of its potential returns per unit of risk. Hayward Holdings is currently generating about 0.06 per unit of risk. If you would invest 3.00 in Magnis Energy Technologies on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Magnis Energy Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnis Energy Technologies vs. Hayward Holdings
Performance |
| Timeline |
| Magnis Energy Techno |
| Hayward Holdings |
Magnis Energy and Hayward Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnis Energy and Hayward Holdings
The main advantage of trading using opposite Magnis Energy and Hayward Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnis Energy position performs unexpectedly, Hayward Holdings 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 Hayward Holdings will offset losses from the drop in Hayward Holdings' long position.| Magnis Energy vs. FREYR Battery SA | Magnis Energy vs. nVent Electric PLC | Magnis Energy vs. Hubbell | Magnis Energy vs. Advanced Energy Industries |
| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |