Correlation Between MGIC Investment and Chineseinvestors
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Chineseinvestors 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 Chineseinvestors 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 Chineseinvestors, you can compare the effects of market volatilities on MGIC Investment and Chineseinvestors 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 Chineseinvestors. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Chineseinvestors.
Diversification Opportunities for MGIC Investment and Chineseinvestors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Chineseinvestors is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Chineseinvestors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chineseinvestors 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 Chineseinvestors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chineseinvestors has no effect on the direction of MGIC Investment i.e., MGIC Investment and Chineseinvestors go up and down completely randomly.
Pair Corralation between MGIC Investment and Chineseinvestors
If you would invest 1,782 in MGIC Investment Corp on September 4, 2024 and sell it today you would earn a total of 811.00 from holding MGIC Investment Corp or generate 45.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. Chineseinvestors
Performance |
| Timeline |
| MGIC Investment Corp |
| Chineseinvestors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MGIC Investment and Chineseinvestors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Chineseinvestors
The main advantage of trading using opposite MGIC Investment and Chineseinvestors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Chineseinvestors 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 Chineseinvestors will offset losses from the drop in Chineseinvestors' long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Chineseinvestors vs. Chemours Co | Chineseinvestors vs. The Mosaic | Chineseinvestors vs. Sealed Air | Chineseinvestors vs. Origin Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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