Correlation Between MagnaChip Semiconductor and Enter Air
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor and Enter Air 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 MagnaChip Semiconductor and Enter Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor Corp and Enter Air SA, you can compare the effects of market volatilities on MagnaChip Semiconductor and Enter Air 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 Enter Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Enter Air.
Diversification Opportunities for MagnaChip Semiconductor and Enter Air
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MagnaChip and Enter is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor Corp and Enter Air SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enter Air SA 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 Corp are associated (or correlated) with Enter Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enter Air SA has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Enter Air go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Enter Air
Assuming the 90 days trading horizon MagnaChip Semiconductor Corp is expected to under-perform the Enter Air. But the stock apears to be less risky and, when comparing its historical volatility, MagnaChip Semiconductor Corp is 2.07 times less risky than Enter Air. The stock trades about -0.02 of its potential returns per unit of risk. The Enter Air SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 859.00 in Enter Air SA on September 3, 2024 and sell it today you would earn a total of 353.00 from holding Enter Air SA or generate 41.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor Corp vs. Enter Air SA
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Enter Air SA |
MagnaChip Semiconductor and Enter Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Enter Air
The main advantage of trading using opposite MagnaChip Semiconductor and Enter Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, Enter Air 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 Enter Air will offset losses from the drop in Enter Air's long position.| MagnaChip Semiconductor vs. Air Lease | MagnaChip Semiconductor vs. Global Ship Lease | MagnaChip Semiconductor vs. Titan Machinery | MagnaChip Semiconductor vs. GREENX METALS LTD |
| Enter Air vs. Uber Technologies | Enter Air vs. Playtech plc | Enter Air vs. Hyatt Hotels | Enter Air vs. HYATT HOTELS A |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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