Correlation Between Qualitau and Magic Software
Can any of the company-specific risk be diversified away by investing in both Qualitau and Magic Software 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 Qualitau and Magic Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualitau and Magic Software Enterprises, you can compare the effects of market volatilities on Qualitau and Magic Software 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 Qualitau with a short position of Magic Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualitau and Magic Software.
Diversification Opportunities for Qualitau and Magic Software
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qualitau and Magic is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qualitau and Magic Software Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Software Enter and Qualitau 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 Qualitau are associated (or correlated) with Magic Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Software Enter has no effect on the direction of Qualitau i.e., Qualitau and Magic Software go up and down completely randomly.
Pair Corralation between Qualitau and Magic Software
Assuming the 90 days trading horizon Qualitau is expected to generate 0.99 times more return on investment than Magic Software. However, Qualitau is 1.01 times less risky than Magic Software. It trades about 0.26 of its potential returns per unit of risk. Magic Software Enterprises is currently generating about 0.19 per unit of risk. If you would invest 4,490,000 in Qualitau on October 7, 2025 and sell it today you would earn a total of 1,546,000 from holding Qualitau or generate 34.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.96% |
| Values | Daily Returns |
Qualitau vs. Magic Software Enterprises
Performance |
| Timeline |
| Qualitau |
| Magic Software Enter |
Qualitau and Magic Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qualitau and Magic Software
The main advantage of trading using opposite Qualitau and Magic Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualitau position performs unexpectedly, Magic Software 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 Magic Software will offset losses from the drop in Magic Software's long position.| Qualitau vs. Gilat Satellite Networks | Qualitau vs. Electra Co Pr | Qualitau vs. Priortech | Qualitau vs. Telsys |
| Magic Software vs. Malam Team | Magic Software vs. Priortech | Magic Software vs. Computer Direct | Magic Software vs. Gilat Satellite Networks |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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