Correlation Between MagnaChip Semiconductor and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor and Evolution Gaming 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 MagnaChip Semiconductor and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and Evolution Gaming Group, you can compare the effects of market volatilities on MagnaChip Semiconductor and Evolution Gaming 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 MagnaChip Semiconductor with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Evolution Gaming.
Diversification Opportunities for MagnaChip Semiconductor and Evolution Gaming
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MagnaChip and Evolution is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and MagnaChip Semiconductor 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 MagnaChip Semiconductor are associated (or correlated) with Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Evolution Gaming go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Evolution Gaming
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to generate 1.23 times more return on investment than Evolution Gaming. However, MagnaChip Semiconductor is 1.23 times more volatile than Evolution Gaming Group. It trades about -0.04 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.07 per unit of risk. If you would invest 517.00 in MagnaChip Semiconductor on September 3, 2024 and sell it today you would lose (85.00) from holding MagnaChip Semiconductor or give up 16.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. Evolution Gaming Group
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Evolution Gaming |
MagnaChip Semiconductor and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Evolution Gaming
The main advantage of trading using opposite MagnaChip Semiconductor and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings | Evolution Gaming vs. Real Luck Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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