Correlation Between GENERAL and MagnaChip Semiconductor
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By analyzing existing cross correlation between GENERAL DYNAMICS P and MagnaChip Semiconductor, you can compare the effects of market volatilities on GENERAL and MagnaChip Semiconductor 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 GENERAL with a short position of MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and MagnaChip Semiconductor.
Diversification Opportunities for GENERAL and MagnaChip Semiconductor
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GENERAL and MagnaChip is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P and MagnaChip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor and GENERAL 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 GENERAL DYNAMICS P are associated (or correlated) with MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of GENERAL i.e., GENERAL and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between GENERAL and MagnaChip Semiconductor
Assuming the 90 days trading horizon GENERAL DYNAMICS P is expected to under-perform the MagnaChip Semiconductor. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL DYNAMICS P is 3.13 times less risky than MagnaChip Semiconductor. The bond trades about -0.1 of its potential returns per unit of risk. The MagnaChip Semiconductor is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 380.00 in MagnaChip Semiconductor on September 12, 2024 and sell it today you would earn a total of 33.00 from holding MagnaChip Semiconductor or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. MagnaChip Semiconductor
Performance |
| Timeline |
| GENERAL DYNAMICS P |
| MagnaChip Semiconductor |
GENERAL and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and MagnaChip Semiconductor
The main advantage of trading using opposite GENERAL and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| GENERAL vs. Acco Brands | GENERAL vs. Entegris | GENERAL vs. Teradyne | GENERAL vs. Lincoln Educational Services |
| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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