Correlation Between Sellas Life and MGIC Investment
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and MGIC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and MGIC Investment Corp, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and MGIC Investment.
Diversification Opportunities for Sellas Life and MGIC Investment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sellas and MGIC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences 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 Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and MGIC Investment go up and down completely randomly.
Pair Corralation between Sellas Life and MGIC Investment
Considering the 90-day investment horizon Sellas Life Sciences is expected to under-perform the MGIC Investment. In addition to that, Sellas Life is 1.76 times more volatile than MGIC Investment Corp. It trades about -0.05 of its total potential returns per unit of risk. MGIC Investment Corp is currently generating about 0.06 per unit of volatility. If you would invest 2,503 in MGIC Investment Corp on August 27, 2024 and sell it today you would earn a total of 47.00 from holding MGIC Investment Corp or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. MGIC Investment Corp
Performance |
| Timeline |
| Sellas Life Sciences |
| MGIC Investment Corp |
Sellas Life and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and MGIC Investment
The main advantage of trading using opposite Sellas Life and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. Eliem Therapeutics | Sellas Life vs. HCW Biologics | Sellas Life vs. Scpharmaceuticals | Sellas Life vs. Milestone Pharmaceuticals |
| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Assured Guaranty | 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |