Correlation Between MGIC Investment and Village Super
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and Village Super 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 Village Super 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 Village Super Market, you can compare the effects of market volatilities on MGIC Investment and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and Village Super.
Diversification Opportunities for MGIC Investment and Village Super
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MGIC and Village is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of MGIC Investment i.e., MGIC Investment and Village Super go up and down completely randomly.
Pair Corralation between MGIC Investment and Village Super
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 0.77 times more return on investment than Village Super. However, MGIC Investment Corp is 1.3 times less risky than Village Super. It trades about 0.11 of its potential returns per unit of risk. Village Super Market is currently generating about 0.07 per unit of risk. If you would invest 1,534 in MGIC Investment Corp on August 31, 2024 and sell it today you would earn a total of 1,092 from holding MGIC Investment Corp or generate 71.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. Village Super Market
Performance |
| Timeline |
| MGIC Investment Corp |
| Village Super Market |
MGIC Investment and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and Village Super
The main advantage of trading using opposite MGIC Investment and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Employers Holdings |
| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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