Correlation Between MAG SILVER and Hologic

Can any of the company-specific risk be diversified away by investing in both MAG SILVER and Hologic 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 MAG SILVER and Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MAG SILVER and Hologic, you can compare the effects of market volatilities on MAG SILVER and Hologic 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 MAG SILVER with a short position of Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Hologic.

Diversification Opportunities for MAG SILVER and Hologic

0.0

Correlation Coefficient

MAG SILVER  Hologic

Pay attention - limited upside

The 3 months correlation between MAG and Hologic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic and MAG SILVER 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 MAG SILVER are associated (or correlated) with Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of MAG SILVER i.e., MAG SILVER and Hologic go up and down completely randomly.

Pair Corralation between MAG SILVER and Hologic

If you would invest  875.00  in MAG SILVER on October 9, 2024 and sell it today you would earn a total of  494.00  from holding MAG SILVER or generate 56.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.4%
Values	Daily Returns

MAG SILVER  vs.  Hologic

MAG SILVER

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MAG SILVER are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, MAG SILVER is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hologic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hologic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hologic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MAG SILVER and Hologic

The main advantage of trading using opposite MAG SILVER and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.

The idea behind MAG SILVER and Hologic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.