Correlation Between MagnaChip Semiconductor and Traton SE
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By analyzing existing cross correlation between MagnaChip Semiconductor Corp and Traton SE, you can compare the effects of market volatilities on MagnaChip Semiconductor and Traton SE 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 Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Traton SE.
Diversification Opportunities for MagnaChip Semiconductor and Traton SE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between MagnaChip and Traton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor Corp and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE 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 Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Traton SE go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Traton SE
Assuming the 90 days trading horizon MagnaChip Semiconductor Corp is expected to under-perform the Traton SE. In addition to that, MagnaChip Semiconductor is 1.32 times more volatile than Traton SE. It trades about -0.05 of its total potential returns per unit of risk. Traton SE is currently generating about 0.11 per unit of volatility. If you would invest 1,833 in Traton SE on September 14, 2024 and sell it today you would earn a total of 1,267 from holding Traton SE or generate 69.12% 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. Traton SE
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Traton SE |
MagnaChip Semiconductor and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Traton SE
The main advantage of trading using opposite MagnaChip Semiconductor and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| MagnaChip Semiconductor vs. QUEEN S ROAD | MagnaChip Semiconductor vs. Nordic Semiconductor ASA | MagnaChip Semiconductor vs. ELMOS SEMICONDUCTOR | MagnaChip Semiconductor vs. BII Railway Transportation |
| Traton SE vs. TOREX SEMICONDUCTOR LTD | Traton SE vs. Apollo Medical Holdings | Traton SE vs. MagnaChip Semiconductor Corp | Traton SE vs. Microbot Medical |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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