Correlation Between Magnitude International and HomesToLife
Can any of the company-specific risk be diversified away by investing in both Magnitude International and HomesToLife 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 HomesToLife 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 HomesToLife, you can compare the effects of market volatilities on Magnitude International and HomesToLife 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 HomesToLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnitude International and HomesToLife.
Diversification Opportunities for Magnitude International and HomesToLife
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnitude and HomesToLife is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Magnitude International Ltd and HomesToLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomesToLife 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 HomesToLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomesToLife has no effect on the direction of Magnitude International i.e., Magnitude International and HomesToLife go up and down completely randomly.
Pair Corralation between Magnitude International and HomesToLife
Given the investment horizon of 90 days Magnitude International Ltd is expected to generate 2.77 times more return on investment than HomesToLife. However, Magnitude International is 2.77 times more volatile than HomesToLife. It trades about 0.31 of its potential returns per unit of risk. HomesToLife is currently generating about -0.09 per unit of risk. If you would invest 124.00 in Magnitude International Ltd on September 10, 2025 and sell it today you would earn a total of 552.00 from holding Magnitude International Ltd or generate 445.16% 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. HomesToLife
Performance |
| Timeline |
| Magnitude International |
| HomesToLife |
Magnitude International and HomesToLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnitude International and HomesToLife
The main advantage of trading using opposite Magnitude International and HomesToLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnitude International position performs unexpectedly, HomesToLife 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 HomesToLife will offset losses from the drop in HomesToLife'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 |
| HomesToLife vs. Chipotle Mexican Grill | HomesToLife vs. Yum Brands | HomesToLife vs. Starbucks | HomesToLife vs. Darden Restaurants |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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