Correlation Between Magnora ASA and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Fidelity National 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 Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Fidelity National Information, you can compare the effects of market volatilities on Magnora ASA and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Fidelity National.
Diversification Opportunities for Magnora ASA and Fidelity National
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Fidelity is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Magnora ASA i.e., Magnora ASA and Fidelity National go up and down completely randomly.
Pair Corralation between Magnora ASA and Fidelity National
Assuming the 90 days trading horizon Magnora ASA is expected to generate 2.07 times more return on investment than Fidelity National. However, Magnora ASA is 2.07 times more volatile than Fidelity National Information. It trades about 0.23 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.19 per unit of risk. If you would invest 2,245 in Magnora ASA on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Magnora ASA or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Fidelity National Information
Performance |
| Timeline |
| Magnora ASA |
| Fidelity National |
Magnora ASA and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Fidelity National
The main advantage of trading using opposite Magnora ASA and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's 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 |
| Fidelity National vs. Catalyst Media Group | Fidelity National vs. CATLIN GROUP | Fidelity National vs. Magnora ASA | Fidelity National 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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