Correlation Between MediPress Health and Magic Software
Can any of the company-specific risk be diversified away by investing in both MediPress Health and Magic Software 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 MediPress Health and Magic Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediPress Health Limited Partnership and Magic Software Enterprises, you can compare the effects of market volatilities on MediPress Health and Magic Software 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 MediPress Health with a short position of Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Magic Software.
Diversification Opportunities for MediPress Health and Magic Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MediPress and Magic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Magic Software Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Software Enter and MediPress Health 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 MediPress Health Limited Partnership are associated (or correlated) with Magic Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Software Enter has no effect on the direction of MediPress Health i.e., MediPress Health and Magic Software go up and down completely randomly.
Pair Corralation between MediPress Health and Magic Software
Assuming the 90 days trading horizon MediPress Health Limited Partnership is expected to under-perform the Magic Software. But the stock apears to be less risky and, when comparing its historical volatility, MediPress Health Limited Partnership is 1.03 times less risky than Magic Software. The stock trades about -0.11 of its potential returns per unit of risk. The Magic Software Enterprises is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 386,890 in Magic Software Enterprises on November 28, 2024 and sell it today you would earn a total of 63,110 from holding Magic Software Enterprises or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediPress Health Limited Partn vs. Magic Software Enterprises
Performance |
| Timeline |
| MediPress Health Lim |
| Magic Software Enter |
MediPress Health and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediPress Health and Magic Software
The main advantage of trading using opposite MediPress Health and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediPress Health position performs unexpectedly, Magic Software 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 Magic Software will offset losses from the drop in Magic Software's long position.| MediPress Health vs. Feat Fund Investments | MediPress Health vs. Mobile Max M | MediPress Health vs. More Mutual Funds | MediPress Health vs. Azorim Investment Development |
| Magic Software vs. Sapiens International | Magic Software vs. AudioCodes | Magic Software vs. Matrix | Magic Software vs. Tower Semiconductor |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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