Correlation Between Pinstripes Holdings and MGIC Investment
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings and MGIC Investment 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 Pinstripes Holdings and MGIC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and MGIC Investment Corp, you can compare the effects of market volatilities on Pinstripes Holdings and MGIC Investment 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 Pinstripes Holdings with a short position of MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and MGIC Investment.
Diversification Opportunities for Pinstripes Holdings and MGIC Investment
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pinstripes and MGIC is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and MGIC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC Investment Corp and Pinstripes Holdings 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 Pinstripes Holdings are associated (or correlated) with MGIC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC Investment Corp has no effect on the direction of Pinstripes Holdings i.e., Pinstripes Holdings and MGIC Investment go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and MGIC Investment
Given the investment horizon of 90 days Pinstripes Holdings is expected to under-perform the MGIC Investment. In addition to that, Pinstripes Holdings is 4.25 times more volatile than MGIC Investment Corp. It trades about -0.06 of its total potential returns per unit of risk. MGIC Investment Corp is currently generating about 0.12 per unit of volatility. If you would invest 1,210 in MGIC Investment Corp on August 31, 2024 and sell it today you would earn a total of 1,416 from holding MGIC Investment Corp or generate 117.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pinstripes Holdings vs. MGIC Investment Corp
Performance |
| Timeline |
| Pinstripes Holdings |
| MGIC Investment Corp |
Pinstripes Holdings and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and MGIC Investment
The main advantage of trading using opposite Pinstripes Holdings and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings position performs unexpectedly, MGIC Investment 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 MGIC Investment will offset losses from the drop in MGIC Investment's long position.| Pinstripes Holdings vs. The Joint Corp | Pinstripes Holdings vs. Cardinal Health | Pinstripes Holdings vs. Valneva SE ADR | Pinstripes Holdings vs. Aquestive Therapeutics |
| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Employers Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |