Correlation Between MGIC Investment and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Aegean Airlines 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 MGIC Investment and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC Investment Corp and Aegean Airlines SA, you can compare the effects of market volatilities on MGIC Investment and Aegean Airlines 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 MGIC Investment with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Aegean Airlines.
Diversification Opportunities for MGIC Investment and Aegean Airlines
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MGIC and Aegean is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and MGIC Investment 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 MGIC Investment Corp are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of MGIC Investment i.e., MGIC Investment and Aegean Airlines go up and down completely randomly.
Pair Corralation between MGIC Investment and Aegean Airlines
If you would invest 1,085 in Aegean Airlines SA on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Aegean Airlines SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MGIC Investment Corp vs. Aegean Airlines SA
Performance |
| Timeline |
| MGIC Investment Corp |
| Aegean Airlines SA |
MGIC Investment and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Aegean Airlines
The main advantage of trading using opposite MGIC Investment and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| MGIC Investment vs. Employers Holdings | MGIC Investment vs. James River Group | MGIC Investment vs. ICC Holdings | MGIC Investment vs. AMERISAFE |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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