Correlation Between TalkPool and MAG Interactive

Can any of the company-specific risk be diversified away by investing in both TalkPool and MAG Interactive 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 TalkPool and MAG Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TalkPool AG and MAG Interactive AB, you can compare the effects of market volatilities on TalkPool and MAG Interactive 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 TalkPool with a short position of MAG Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of TalkPool and MAG Interactive.

Diversification Opportunities for TalkPool and MAG Interactive

0.89

Correlation Coefficient

TalkPool  MAG Interactive

Very poor diversification

The 3 months correlation between TalkPool and MAG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding TalkPool AG and MAG Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Interactive AB and TalkPool 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 TalkPool AG are associated (or correlated) with MAG Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Interactive AB has no effect on the direction of TalkPool i.e., TalkPool and MAG Interactive go up and down completely randomly.

Pair Corralation between TalkPool and MAG Interactive

Assuming the 90 days trading horizon TalkPool AG is expected to generate 1.53 times more return on investment than MAG Interactive. However, TalkPool is 1.53 times more volatile than MAG Interactive AB. It trades about 0.18 of its potential returns per unit of risk. MAG Interactive AB is currently generating about 0.27 per unit of risk. If you would invest  820.00  in TalkPool AG on April 25, 2025 and sell it today you would earn a total of  555.00  from holding TalkPool AG or generate 67.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

TalkPool AG  vs.  MAG Interactive AB

TalkPool AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TalkPool AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TalkPool unveiled solid returns over the last few months and may actually be approaching a breakup point.

MAG Interactive AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MAG Interactive AB are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, MAG Interactive unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TalkPool and MAG Interactive

The main advantage of trading using opposite TalkPool and MAG Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TalkPool position performs unexpectedly, MAG Interactive 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 MAG Interactive will offset losses from the drop in MAG Interactive's long position.

The idea behind TalkPool AG and MAG Interactive AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.