Correlation Between MagnaChip Semiconductor and ENERGY
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By analyzing existing cross correlation between MagnaChip Semiconductor and ENERGY TRANSFER OPER, you can compare the effects of market volatilities on MagnaChip Semiconductor and ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and ENERGY.
Diversification Opportunities for MagnaChip Semiconductor and ENERGY
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MagnaChip and ENERGY is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and ENERGY TRANSFER OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGY TRANSFER OPER 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGY TRANSFER OPER has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and ENERGY go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and ENERGY
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to under-perform the ENERGY. In addition to that, MagnaChip Semiconductor is 3.31 times more volatile than ENERGY TRANSFER OPER. It trades about -0.05 of its total potential returns per unit of risk. ENERGY TRANSFER OPER is currently generating about -0.08 per unit of volatility. If you would invest 10,590 in ENERGY TRANSFER OPER on September 12, 2024 and sell it today you would lose (473.00) from holding ENERGY TRANSFER OPER or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. ENERGY TRANSFER OPER
Performance |
| Timeline |
| MagnaChip Semiconductor |
| ENERGY TRANSFER OPER |
MagnaChip Semiconductor and ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and ENERGY
The main advantage of trading using opposite MagnaChip Semiconductor and ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, ENERGY 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 ENERGY will offset losses from the drop in ENERGY's long position.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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