Correlation Between Magnora ASA and T Mobile
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and T Mobile 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 T Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and T Mobile, you can compare the effects of market volatilities on Magnora ASA and T Mobile 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 T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and T Mobile.
Diversification Opportunities for Magnora ASA and T Mobile
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magnora and 0R2L is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of Magnora ASA i.e., Magnora ASA and T Mobile go up and down completely randomly.
Pair Corralation between Magnora ASA and T Mobile
Assuming the 90 days trading horizon Magnora ASA is expected to generate 22.84 times less return on investment than T Mobile. But when comparing it to its historical volatility, Magnora ASA is 23.18 times less risky than T Mobile. It trades about 0.1 of its potential returns per unit of risk. T Mobile is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19,953 in T Mobile on September 3, 2024 and sell it today you would earn a total of 4,741 from holding T Mobile or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Magnora ASA vs. T Mobile
Performance |
| Timeline |
| Magnora ASA |
| T Mobile |
Magnora ASA and T Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and T Mobile
The main advantage of trading using opposite Magnora ASA and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, T Mobile 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 T Mobile will offset losses from the drop in T Mobile'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 |
| T Mobile vs. Catalyst Media Group | T Mobile vs. CATLIN GROUP | T Mobile vs. Magnora ASA | T Mobile 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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