Correlation Between Arcticzymes Technologies and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Arcticzymes Technologies 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 Arcticzymes Technologies and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcticzymes Technologies ASA and Magnora ASA, you can compare the effects of market volatilities on Arcticzymes Technologies 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 Arcticzymes Technologies with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcticzymes Technologies and Magnora ASA.
Diversification Opportunities for Arcticzymes Technologies and Magnora ASA
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arcticzymes and Magnora is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Arcticzymes Technologies ASA and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Arcticzymes Technologies 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 Arcticzymes Technologies 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 Arcticzymes Technologies i.e., Arcticzymes Technologies and Magnora ASA go up and down completely randomly.
Pair Corralation between Arcticzymes Technologies and Magnora ASA
Assuming the 90 days trading horizon Arcticzymes Technologies ASA is expected to under-perform the Magnora ASA. But the stock apears to be less risky and, when comparing its historical volatility, Arcticzymes Technologies ASA is 1.39 times less risky than Magnora ASA. The stock trades about -0.09 of its potential returns per unit of risk. The Magnora ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,823 in Magnora ASA on September 3, 2024 and sell it today you would earn a total of 682.00 from holding Magnora ASA or generate 37.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Arcticzymes Technologies ASA vs. Magnora ASA
Performance |
| Timeline |
| Arcticzymes Technologies |
| Magnora ASA |
Arcticzymes Technologies and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcticzymes Technologies and Magnora ASA
The main advantage of trading using opposite Arcticzymes Technologies and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcticzymes Technologies 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.| Arcticzymes Technologies vs. Catalyst Media Group | Arcticzymes Technologies vs. CATLIN GROUP | Arcticzymes Technologies vs. Magnora ASA | Arcticzymes Technologies vs. RTW Venture Fund |
| Magnora ASA vs. Catalyst Media Group | Magnora ASA vs. CATLIN GROUP | Magnora ASA vs. RTW Venture Fund | Magnora ASA vs. Secure Property Development |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |