Correlation Between MGIC Investment and Loop Media
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Loop Media 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 Loop Media 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 Loop Media, you can compare the effects of market volatilities on MGIC Investment and Loop Media 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 Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Loop Media.
Diversification Opportunities for MGIC Investment and Loop Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Loop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media 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 Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of MGIC Investment i.e., MGIC Investment and Loop Media go up and down completely randomly.
Pair Corralation between MGIC Investment and Loop Media
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 0.15 times more return on investment than Loop Media. However, MGIC Investment Corp is 6.88 times less risky than Loop Media. It trades about 0.11 of its potential returns per unit of risk. Loop Media is currently generating about -0.07 per unit of risk. If you would invest 1,223 in MGIC Investment Corp on September 12, 2024 and sell it today you would earn a total of 1,234 from holding MGIC Investment Corp or generate 100.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.23% |
| Values | Daily Returns |
MGIC Investment Corp vs. Loop Media
Performance |
| Timeline |
| MGIC Investment Corp |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MGIC Investment and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Loop Media
The main advantage of trading using opposite MGIC Investment and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Loop Media 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 Loop Media will offset losses from the drop in Loop Media's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Loop Media vs. RCS MediaGroup SpA | Loop Media vs. Northstar Clean Technologies | Loop Media vs. National CineMedia | Loop Media vs. MGIC Investment Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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