Correlation Between Magnitude International and Flux Power
Can any of the company-specific risk be diversified away by investing in both Magnitude International and Flux Power 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 Flux Power 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 Flux Power Holdings, you can compare the effects of market volatilities on Magnitude International and Flux Power 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 Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnitude International and Flux Power.
Diversification Opportunities for Magnitude International and Flux Power
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnitude and Flux is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Magnitude International Ltd and Flux Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flux Power Holdings 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 Flux Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flux Power Holdings has no effect on the direction of Magnitude International i.e., Magnitude International and Flux Power go up and down completely randomly.
Pair Corralation between Magnitude International and Flux Power
Given the investment horizon of 90 days Magnitude International Ltd is expected to generate 0.79 times more return on investment than Flux Power. However, Magnitude International Ltd is 1.27 times less risky than Flux Power. It trades about 0.33 of its potential returns per unit of risk. Flux Power Holdings is currently generating about 0.08 per unit of risk. If you would invest 111.00 in Magnitude International Ltd on September 7, 2025 and sell it today you would earn a total of 565.00 from holding Magnitude International Ltd or generate 509.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnitude International Ltd vs. Flux Power Holdings
Performance |
| Timeline |
| Magnitude International |
| Flux Power Holdings |
Magnitude International and Flux Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnitude International and Flux Power
The main advantage of trading using opposite Magnitude International and Flux Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnitude International position performs unexpectedly, Flux Power 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 Flux Power will offset losses from the drop in Flux Power's long position.| Magnitude International vs. Vulcan Materials | Magnitude International vs. Mako Mining Corp | Magnitude International vs. Kossan Rubber Industries | Magnitude International vs. Martin Marietta Materials |
| Flux Power vs. InterContinental Hotels Group | Flux Power vs. Candlewood Hotel | Flux Power vs. Astro Communications | Flux Power vs. On4 Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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