Correlation Between MGIC Investment and Black Spade
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Black Spade 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 Black Spade 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 Black Spade Acquisition, you can compare the effects of market volatilities on MGIC Investment and Black Spade 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 Black Spade. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Black Spade.
Diversification Opportunities for MGIC Investment and Black Spade
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MGIC and Black is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Black Spade Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Spade Acquisition 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 Black Spade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Spade Acquisition has no effect on the direction of MGIC Investment i.e., MGIC Investment and Black Spade go up and down completely randomly.
Pair Corralation between MGIC Investment and Black Spade
If you would invest 1,006 in Black Spade Acquisition on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Black Spade Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. Black Spade Acquisition
Performance |
| Timeline |
| MGIC Investment Corp |
| Black Spade Acquisition |
MGIC Investment and Black Spade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Black Spade
The main advantage of trading using opposite MGIC Investment and Black Spade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Black Spade 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 Black Spade will offset losses from the drop in Black Spade's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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