Correlation Between MCEWEN MINING and Magic Software
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Magic Software 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 MCEWEN MINING and Magic Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and Magic Software Enterprises, you can compare the effects of market volatilities on MCEWEN MINING and Magic Software 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 MCEWEN MINING with a short position of Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Magic Software.
Diversification Opportunities for MCEWEN MINING and Magic Software
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Magic is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Magic Software Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Software Enter and MCEWEN MINING 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 MCEWEN MINING INC are associated (or correlated) with Magic Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Software Enter has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Magic Software go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Magic Software
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Magic Software. In addition to that, MCEWEN MINING is 1.48 times more volatile than Magic Software Enterprises. It trades about -0.01 of its total potential returns per unit of risk. Magic Software Enterprises is currently generating about 0.1 per unit of volatility. If you would invest 1,077 in Magic Software Enterprises on September 29, 2024 and sell it today you would earn a total of 43.00 from holding Magic Software Enterprises or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Magic Software Enterprises
Performance |
| Timeline |
| MCEWEN MINING INC |
| Magic Software Enter |
MCEWEN MINING and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Magic Software
The main advantage of trading using opposite MCEWEN MINING and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Magic Software 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 Magic Software will offset losses from the drop in Magic Software's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. Gemfields Group Limited |
| Magic Software vs. Intuit Inc | Magic Software vs. Palo Alto Networks | Magic Software vs. Synopsys | Magic Software vs. Cadence Design Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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