Correlation Between MGIC Investment and Norra Metals
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Norra Metals 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 Norra Metals 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 Norra Metals Corp, you can compare the effects of market volatilities on MGIC Investment and Norra Metals 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 Norra Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Norra Metals.
Diversification Opportunities for MGIC Investment and Norra Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Norra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Norra Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norra Metals Corp 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 Norra Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norra Metals Corp has no effect on the direction of MGIC Investment i.e., MGIC Investment and Norra Metals go up and down completely randomly.
Pair Corralation between MGIC Investment and Norra Metals
If you would invest 2,110 in MGIC Investment Corp on September 3, 2024 and sell it today you would earn a total of 516.00 from holding MGIC Investment Corp or generate 24.45% 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. Norra Metals Corp
Performance |
| Timeline |
| MGIC Investment Corp |
| Norra Metals Corp |
MGIC Investment and Norra Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Norra Metals
The main advantage of trading using opposite MGIC Investment and Norra Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Norra Metals 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 Norra Metals will offset losses from the drop in Norra Metals' long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| Norra Metals vs. Aspen Insurance Holdings | Norra Metals vs. MGIC Investment Corp | Norra Metals vs. Pekin Life Insurance | Norra Metals vs. NETGEAR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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