Correlation Between Magnitude International and Ads Tec
Can any of the company-specific risk be diversified away by investing in both Magnitude International and Ads Tec 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 Magnitude International and Ads Tec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnitude International Ltd and Ads Tec Energy, you can compare the effects of market volatilities on Magnitude International and Ads Tec 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 Magnitude International with a short position of Ads Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnitude International and Ads Tec.
Diversification Opportunities for Magnitude International and Ads Tec
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnitude and Ads is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Magnitude International Ltd and Ads Tec Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ads Tec Energy and Magnitude International 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 Magnitude International Ltd are associated (or correlated) with Ads Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ads Tec Energy has no effect on the direction of Magnitude International i.e., Magnitude International and Ads Tec go up and down completely randomly.
Pair Corralation between Magnitude International and Ads Tec
Given the investment horizon of 90 days Magnitude International Ltd is expected to generate 2.49 times more return on investment than Ads Tec. However, Magnitude International is 2.49 times more volatile than Ads Tec Energy. It trades about 0.25 of its potential returns per unit of risk. Ads Tec Energy is currently generating about -0.05 per unit of risk. If you would invest 105.00 in Magnitude International Ltd on August 22, 2025 and sell it today you would earn a total of 279.00 from holding Magnitude International Ltd or generate 265.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnitude International Ltd vs. Ads Tec Energy
Performance |
| Timeline |
| Magnitude International |
| Ads Tec Energy |
Magnitude International and Ads Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnitude International and Ads Tec
The main advantage of trading using opposite Magnitude International and Ads Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnitude International position performs unexpectedly, Ads Tec 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 Ads Tec will offset losses from the drop in Ads Tec's long position.| Magnitude International vs. Alpha Pro Tech | Magnitude International vs. rYojbaba Co, Ltd | Magnitude International vs. Ads Tec Energy | Magnitude International vs. Draganfly |
| Ads Tec vs. T1 Energy | Ads Tec vs. Lightbridge Corp | Ads Tec vs. Forward Air | Ads Tec vs. FTAI Infrastructure |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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