Correlation Between MagnaChip Semiconductor and PETROLEOS
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By analyzing existing cross correlation between MagnaChip Semiconductor and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on MagnaChip Semiconductor and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and PETROLEOS.
Diversification Opportunities for MagnaChip Semiconductor and PETROLEOS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MagnaChip and PETROLEOS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and PETROLEOS go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and PETROLEOS
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to generate 1.09 times more return on investment than PETROLEOS. However, MagnaChip Semiconductor is 1.09 times more volatile than PETROLEOS MEXICANOS 65. It trades about 0.27 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about -0.2 per unit of risk. If you would invest 382.00 in MagnaChip Semiconductor on September 4, 2024 and sell it today you would earn a total of 65.00 from holding MagnaChip Semiconductor or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| MagnaChip Semiconductor |
| PETROLEOS MEXICANOS |
MagnaChip Semiconductor and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and PETROLEOS
The main advantage of trading using opposite MagnaChip Semiconductor and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| PETROLEOS vs. The Travelers Companies | PETROLEOS vs. GE Aerospace | PETROLEOS vs. Walmart | PETROLEOS vs. Pfizer Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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