Correlation Between RadNet and MGIC Investment
Can any of the company-specific risk be diversified away by investing in both RadNet 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 RadNet and MGIC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and MGIC Investment Corp, you can compare the effects of market volatilities on RadNet 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 RadNet with a short position of MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and MGIC Investment.
Diversification Opportunities for RadNet and MGIC Investment
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between RadNet and MGIC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc 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 RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and MGIC Investment go up and down completely randomly.
Pair Corralation between RadNet and MGIC Investment
Given the investment horizon of 90 days RadNet Inc is expected to generate 1.98 times more return on investment than MGIC Investment. However, RadNet is 1.98 times more volatile than MGIC Investment Corp. It trades about 0.09 of its potential returns per unit of risk. MGIC Investment Corp is currently generating about 0.12 per unit of risk. If you would invest 6,105 in RadNet Inc on September 3, 2024 and sell it today you would earn a total of 2,071 from holding RadNet Inc or generate 33.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. MGIC Investment Corp
Performance |
| Timeline |
| RadNet Inc |
| MGIC Investment Corp |
RadNet and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and MGIC Investment
The main advantage of trading using opposite RadNet and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |