Correlation Between MGIC Investment and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Artisan Partners 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 Artisan Partners 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 Artisan Partners Asset, you can compare the effects of market volatilities on MGIC Investment and Artisan Partners 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 Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Artisan Partners.
Diversification Opportunities for MGIC Investment and Artisan Partners
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MGIC and Artisan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset 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 Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of MGIC Investment i.e., MGIC Investment and Artisan Partners go up and down completely randomly.
Pair Corralation between MGIC Investment and Artisan Partners
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 0.81 times more return on investment than Artisan Partners. However, MGIC Investment Corp is 1.24 times less risky than Artisan Partners. It trades about 0.2 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.02 per unit of risk. If you would invest 2,369 in MGIC Investment Corp on October 28, 2024 and sell it today you would earn a total of 106.00 from holding MGIC Investment Corp or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. Artisan Partners Asset
Performance |
| Timeline |
| MGIC Investment Corp |
| Artisan Partners Asset |
MGIC Investment and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Artisan Partners
The main advantage of trading using opposite MGIC Investment and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Artisan Partners 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 Artisan Partners will offset losses from the drop in Artisan Partners' long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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