Correlation Between MGIC Investment and 25160PAH0
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By analyzing existing cross correlation between MGIC Investment Corp and DB 2552 07 JAN 28, you can compare the effects of market volatilities on MGIC Investment and 25160PAH0 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 25160PAH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and 25160PAH0.
Diversification Opportunities for MGIC Investment and 25160PAH0
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MGIC and 25160PAH0 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and DB 2552 07 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB 2552 07 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 25160PAH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB 2552 07 has no effect on the direction of MGIC Investment i.e., MGIC Investment and 25160PAH0 go up and down completely randomly.
Pair Corralation between MGIC Investment and 25160PAH0
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 5.49 times more return on investment than 25160PAH0. However, MGIC Investment is 5.49 times more volatile than DB 2552 07 JAN 28. It trades about 0.06 of its potential returns per unit of risk. DB 2552 07 JAN 28 is currently generating about 0.01 per unit of risk. If you would invest 1,885 in MGIC Investment Corp on October 14, 2024 and sell it today you would earn a total of 404.00 from holding MGIC Investment Corp or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.73% |
| Values | Daily Returns |
MGIC Investment Corp vs. DB 2552 07 JAN 28
Performance |
| Timeline |
| MGIC Investment Corp |
| DB 2552 07 |
MGIC Investment and 25160PAH0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and 25160PAH0
The main advantage of trading using opposite MGIC Investment and 25160PAH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, 25160PAH0 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 25160PAH0 will offset losses from the drop in 25160PAH0's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
| 25160PAH0 vs. Black Spade Acquisition | 25160PAH0 vs. Hudson Acquisition I | 25160PAH0 vs. MGIC Investment Corp | 25160PAH0 vs. Cedar Realty Trust |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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