Correlation Between MGIC Investment and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Nok Airlines 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 Nok Airlines 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 Nok Airlines Public, you can compare the effects of market volatilities on MGIC Investment and Nok Airlines 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 Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Nok Airlines.
Diversification Opportunities for MGIC Investment and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public 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 Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines Public has no effect on the direction of MGIC Investment i.e., MGIC Investment and Nok Airlines go up and down completely randomly.
Pair Corralation between MGIC Investment and Nok Airlines
If you would invest 2,340 in MGIC Investment Corp on September 4, 2024 and sell it today you would earn a total of 263.00 from holding MGIC Investment Corp or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MGIC Investment Corp vs. Nok Airlines Public
Performance |
| Timeline |
| MGIC Investment Corp |
| Nok Airlines Public |
MGIC Investment and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Nok Airlines
The main advantage of trading using opposite MGIC Investment and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Nok Airlines vs. Finnair Oyj | Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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