Correlation Between Austevoll Seafood and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Magnora ASA 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 Austevoll Seafood and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austevoll Seafood ASA and Magnora ASA, you can compare the effects of market volatilities on Austevoll Seafood and Magnora ASA 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 Austevoll Seafood with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Magnora ASA.
Diversification Opportunities for Austevoll Seafood and Magnora ASA
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austevoll and Magnora is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Austevoll Seafood 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 Austevoll Seafood ASA are associated (or correlated) with Magnora ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnora ASA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Magnora ASA go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Magnora ASA
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to under-perform the Magnora ASA. But the stock apears to be less risky and, when comparing its historical volatility, Austevoll Seafood ASA is 2.04 times less risky than Magnora ASA. The stock trades about -0.27 of its potential returns per unit of risk. The Magnora ASA is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,475 in Magnora ASA on September 24, 2024 and sell it today you would earn a total of 285.00 from holding Magnora ASA or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Magnora ASA
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Magnora ASA |
Austevoll Seafood and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Magnora ASA
The main advantage of trading using opposite Austevoll Seafood and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Magnora ASA 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 Magnora ASA will offset losses from the drop in Magnora ASA's long position.| Austevoll Seafood vs. MTI Wireless Edge | Austevoll Seafood vs. Datalogic | Austevoll Seafood vs. Teradata Corp | Austevoll Seafood vs. Spire Healthcare Group |
| Magnora ASA vs. Austevoll Seafood ASA | Magnora ASA vs. DXC Technology Co | Magnora ASA vs. PPHE Hotel Group | Magnora ASA vs. Roebuck Food Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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