Correlation Between MGIC Investment and SD Standard
Can any of the company-specific risk be diversified away by investing in both MGIC Investment and SD Standard 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 MGIC Investment and SD Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC Investment Corp and SD Standard Drilling, you can compare the effects of market volatilities on MGIC Investment and SD Standard 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 MGIC Investment with a short position of SD Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and SD Standard.
Diversification Opportunities for MGIC Investment and SD Standard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and SDSDF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment Corp and SD Standard Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SD Standard Drilling and MGIC Investment 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 MGIC Investment Corp are associated (or correlated) with SD Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SD Standard Drilling has no effect on the direction of MGIC Investment i.e., MGIC Investment and SD Standard go up and down completely randomly.
Pair Corralation between MGIC Investment and SD Standard
If you would invest 2,591 in MGIC Investment Corp on June 8, 2025 and sell it today you would earn a total of 249.00 from holding MGIC Investment Corp or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
MGIC Investment Corp vs. SD Standard Drilling
Performance |
| Timeline |
| MGIC Investment Corp |
| SD Standard Drilling |
MGIC Investment and SD Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and SD Standard
The main advantage of trading using opposite MGIC Investment and SD Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment position performs unexpectedly, SD Standard 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 SD Standard will offset losses from the drop in SD Standard's long position.| MGIC Investment vs. Radian Group | MGIC Investment vs. Essent Group | MGIC Investment vs. NMI Holdings | MGIC Investment vs. MBIA Inc |
| SD Standard vs. NVIDIA | SD Standard vs. Microsoft | SD Standard vs. Apple Inc | SD Standard vs. Alphabet Inc Class C |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |