Correlation Between Magnora ASA and Charter Communications
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Charter Communications 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 Magnora ASA and Charter Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Charter Communications Cl, you can compare the effects of market volatilities on Magnora ASA and Charter Communications 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 Magnora ASA with a short position of Charter Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Charter Communications.
Diversification Opportunities for Magnora ASA and Charter Communications
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnora and Charter is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Charter Communications Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications and Magnora ASA 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 Magnora ASA are associated (or correlated) with Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of Magnora ASA i.e., Magnora ASA and Charter Communications go up and down completely randomly.
Pair Corralation between Magnora ASA and Charter Communications
Assuming the 90 days trading horizon Magnora ASA is expected to generate 4.27 times less return on investment than Charter Communications. In addition to that, Magnora ASA is 2.49 times more volatile than Charter Communications Cl. It trades about 0.01 of its total potential returns per unit of risk. Charter Communications Cl is currently generating about 0.11 per unit of volatility. If you would invest 27,174 in Charter Communications Cl on September 3, 2024 and sell it today you would earn a total of 12,221 from holding Charter Communications Cl or generate 44.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Charter Communications Cl
Performance |
| Timeline |
| Magnora ASA |
| Charter Communications |
Magnora ASA and Charter Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Charter Communications
The main advantage of trading using opposite Magnora ASA and Charter Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Charter Communications 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 Charter Communications will offset losses from the drop in Charter Communications' long position.| Magnora ASA vs. Catalyst Media Group | Magnora ASA vs. CATLIN GROUP | Magnora ASA vs. RTW Venture Fund | Magnora ASA vs. Secure Property Development |
| Charter Communications vs. Catalyst Media Group | Charter Communications vs. CATLIN GROUP | Charter Communications vs. Magnora ASA | Charter Communications vs. RTW Venture Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| 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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |