Correlation Between 06368EDC3 and MGIC Investment
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By analyzing existing cross correlation between BANK OF MONTREAL and MGIC Investment Corp, you can compare the effects of market volatilities on 06368EDC3 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 06368EDC3 with a short position of MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06368EDC3 and MGIC Investment.
Diversification Opportunities for 06368EDC3 and MGIC Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 06368EDC3 and MGIC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF MONTREAL 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 06368EDC3 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 BANK OF MONTREAL 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 06368EDC3 i.e., 06368EDC3 and MGIC Investment go up and down completely randomly.
Pair Corralation between 06368EDC3 and MGIC Investment
Assuming the 90 days trading horizon BANK OF MONTREAL is expected to generate 0.21 times more return on investment than MGIC Investment. However, BANK OF MONTREAL is 4.84 times less risky than MGIC Investment. It trades about -0.11 of its potential returns per unit of risk. MGIC Investment Corp is currently generating about -0.05 per unit of risk. If you would invest 9,549 in BANK OF MONTREAL on September 12, 2024 and sell it today you would lose (149.00) from holding BANK OF MONTREAL or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.12% |
| Values | Daily Returns |
BANK OF MONTREAL vs. MGIC Investment Corp
Performance |
| Timeline |
| BANK OF MONTREAL |
| MGIC Investment Corp |
06368EDC3 and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06368EDC3 and MGIC Investment
The main advantage of trading using opposite 06368EDC3 and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06368EDC3 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.| 06368EDC3 vs. Ihuman Inc | 06368EDC3 vs. Nexstar Broadcasting Group | 06368EDC3 vs. Zhihu Inc ADR | 06368EDC3 vs. Mesa Air Group |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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