Correlation Between Magnite and BAKER
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By analyzing existing cross correlation between Magnite and BAKER HUGHES A, you can compare the effects of market volatilities on Magnite and BAKER 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 Magnite with a short position of BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and BAKER.
Diversification Opportunities for Magnite and BAKER
Very good diversification
The 3 months correlation between Magnite and BAKER is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A and Magnite 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 Magnite are associated (or correlated) with BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of Magnite i.e., Magnite and BAKER go up and down completely randomly.
Pair Corralation between Magnite and BAKER
Given the investment horizon of 90 days Magnite is expected to under-perform the BAKER. In addition to that, Magnite is 2.0 times more volatile than BAKER HUGHES A. It trades about -0.01 of its total potential returns per unit of risk. BAKER HUGHES A is currently generating about 0.02 per unit of volatility. If you would invest 8,198 in BAKER HUGHES A on September 25, 2024 and sell it today you would earn a total of 23.00 from holding BAKER HUGHES A or generate 0.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 85.71% |
Values | Daily Returns |
Magnite vs. BAKER HUGHES A
Performance |
Timeline |
Magnite |
BAKER HUGHES A |
Magnite and BAKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Magnite and BAKER
The main advantage of trading using opposite Magnite and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.Magnite vs. Deluxe | Magnite vs. Clear Channel Outdoor | Magnite vs. Entravision Communications | Magnite vs. Innovid Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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