Correlation Between MGIC Investment and Magplane Technology
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Magplane Technology 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 Magplane Technology 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 Magplane Technology, you can compare the effects of market volatilities on MGIC Investment and Magplane Technology 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 Magplane Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Magplane Technology.
Diversification Opportunities for MGIC Investment and Magplane Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Magplane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Magplane Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magplane Technology 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 Magplane Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magplane Technology has no effect on the direction of MGIC Investment i.e., MGIC Investment and Magplane Technology go up and down completely randomly.
Pair Corralation between MGIC Investment and Magplane Technology
If you would invest 1,231 in MGIC Investment Corp on September 13, 2024 and sell it today you would earn a total of 1,250 from holding MGIC Investment Corp or generate 101.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. Magplane Technology
Performance |
| Timeline |
| MGIC Investment Corp |
| Magplane Technology |
MGIC Investment and Magplane Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Magplane Technology
The main advantage of trading using opposite MGIC Investment and Magplane Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Magplane Technology 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 Magplane Technology will offset losses from the drop in Magplane Technology's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Magplane Technology vs. CenterPoint Energy | Magplane Technology vs. Cheniere Energy Partners | Magplane Technology vs. Sapiens International | Magplane Technology vs. ServiceNow |
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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