Correlation Between MGIC Investment and Core Scientific,
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Core Scientific, 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 Core Scientific, 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 Core Scientific, Common, you can compare the effects of market volatilities on MGIC Investment and Core Scientific, 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 Core Scientific,. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Core Scientific,.
Diversification Opportunities for MGIC Investment and Core Scientific,
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MGIC and Core is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Core Scientific, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Scientific, Common 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 Core Scientific,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Scientific, Common has no effect on the direction of MGIC Investment i.e., MGIC Investment and Core Scientific, go up and down completely randomly.
Pair Corralation between MGIC Investment and Core Scientific,
Considering the 90-day investment horizon MGIC Investment is expected to generate 34.99 times less return on investment than Core Scientific,. But when comparing it to its historical volatility, MGIC Investment Corp is 44.28 times less risky than Core Scientific,. It trades about 0.11 of its potential returns per unit of risk. Core Scientific, Common is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Core Scientific, Common on August 30, 2024 and sell it today you would earn a total of 1,757 from holding Core Scientific, Common or generate 12550.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 54.14% |
| Values | Daily Returns |
MGIC Investment Corp vs. Core Scientific, Common
Performance |
| Timeline |
| MGIC Investment Corp |
| Core Scientific, Common |
MGIC Investment and Core Scientific, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Core Scientific,
The main advantage of trading using opposite MGIC Investment and Core Scientific, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Core Scientific, 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 Core Scientific, will offset losses from the drop in Core Scientific,'s long position.| MGIC Investment vs. AMERISAFE | MGIC Investment vs. Enact Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Radian Group |
| Core Scientific, vs. SentinelOne | Core Scientific, vs. BlackBerry | Core Scientific, vs. Global Blue Group | Core Scientific, vs. Aurora Mobile |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |