Correlation Between MGIC Investment and 058498AW6
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By analyzing existing cross correlation between MGIC Investment Corp and BALL P 2875, you can compare the effects of market volatilities on MGIC Investment and 058498AW6 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 058498AW6. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and 058498AW6.
Diversification Opportunities for MGIC Investment and 058498AW6
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MGIC and 058498AW6 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and BALL P 2875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BALL P 2875 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 058498AW6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BALL P 2875 has no effect on the direction of MGIC Investment i.e., MGIC Investment and 058498AW6 go up and down completely randomly.
Pair Corralation between MGIC Investment and 058498AW6
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 3.25 times more return on investment than 058498AW6. However, MGIC Investment is 3.25 times more volatile than BALL P 2875. It trades about 0.11 of its potential returns per unit of risk. BALL P 2875 is currently generating about 0.06 per unit of risk. If you would invest 1,782 in MGIC Investment Corp on September 4, 2024 and sell it today you would earn a total of 811.00 from holding MGIC Investment Corp or generate 45.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
MGIC Investment Corp vs. BALL P 2875
Performance |
| Timeline |
| MGIC Investment Corp |
| BALL P 2875 |
MGIC Investment and 058498AW6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and 058498AW6
The main advantage of trading using opposite MGIC Investment and 058498AW6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, 058498AW6 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 058498AW6 will offset losses from the drop in 058498AW6's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| 058498AW6 vs. The Travelers Companies | 058498AW6 vs. GE Aerospace | 058498AW6 vs. Walmart | 058498AW6 vs. Pfizer Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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