Correlation Between MGIC Investment and Axion Ventures
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Axion Ventures 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 Axion Ventures 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 Axion Ventures, you can compare the effects of market volatilities on MGIC Investment and Axion Ventures 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 Axion Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Axion Ventures.
Diversification Opportunities for MGIC Investment and Axion Ventures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Axion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Axion Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axion Ventures 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 Axion Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axion Ventures has no effect on the direction of MGIC Investment i.e., MGIC Investment and Axion Ventures go up and down completely randomly.
Pair Corralation between MGIC Investment and Axion Ventures
If you would invest 0.00 in Axion Ventures on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Axion Ventures or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
MGIC Investment Corp vs. Axion Ventures
Performance |
| Timeline |
| MGIC Investment Corp |
| Axion Ventures |
MGIC Investment and Axion Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Axion Ventures
The main advantage of trading using opposite MGIC Investment and Axion Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Axion Ventures 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 Axion Ventures will offset losses from the drop in Axion Ventures' long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Axion Ventures vs. Playstudios | Axion Ventures vs. Doubledown Interactive Co | Axion Ventures vs. Bragg Gaming Group | Axion Ventures vs. Golden Matrix Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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