Correlation Between MGIC Investment and 81685VAA1

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and 81685VAA1 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 81685VAA1 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 SRE 325 15 JAN 32, you can compare the effects of market volatilities on MGIC Investment and 81685VAA1 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 81685VAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and 81685VAA1.

Diversification Opportunities for MGIC Investment and 81685VAA1

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between MGIC and 81685VAA1 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and SRE 325 15 JAN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRE 325 15 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 81685VAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRE 325 15 has no effect on the direction of MGIC Investment i.e., MGIC Investment and 81685VAA1 go up and down completely randomly.

Pair Corralation between MGIC Investment and 81685VAA1

Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 2.07 times more return on investment than 81685VAA1. However, MGIC Investment is 2.07 times more volatile than SRE 325 15 JAN 32. It trades about 0.1 of its potential returns per unit of risk. SRE 325 15 JAN 32 is currently generating about 0.04 per unit of risk. If you would invest  1,720  in MGIC Investment Corp on September 14, 2024 and sell it today you would earn a total of  735.00  from holding MGIC Investment Corp or generate 42.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy44.61%
ValuesDaily Returns

MGIC Investment Corp  vs.  SRE 325 15 JAN 32

 Performance 
       Timeline  
MGIC Investment Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MGIC Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MGIC Investment is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
SRE 325 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SRE 325 15 JAN 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for SRE 325 15 JAN 32 investors.

MGIC Investment and 81685VAA1 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MGIC Investment and 81685VAA1

The main advantage of trading using opposite MGIC Investment and 81685VAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, 81685VAA1 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 81685VAA1 will offset losses from the drop in 81685VAA1's long position.
MGIC Investment vs. MBIA Inc
MGIC Investment vs. NMI Holdings
MGIC Investment vs. Essent Group
MGIC Investment vs. Assured Guaranty
The idea behind MGIC Investment Corp and SRE 325 15 JAN 32 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
81685VAA1 vs. JetBlue Airways Corp
81685VAA1 vs. Sun Life Financial
81685VAA1 vs. Nok Airlines Public
81685VAA1 vs. MGIC Investment Corp
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
CEOs Directory
Screen CEOs from public companies around the world
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY