Correlation Between Magnora ASA and Amedeo Air
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Amedeo Air 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 Amedeo Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Amedeo Air Four, you can compare the effects of market volatilities on Magnora ASA and Amedeo Air 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 Amedeo Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Amedeo Air.
Diversification Opportunities for Magnora ASA and Amedeo Air
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnora and Amedeo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Amedeo Air Four in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedeo Air Four 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 Amedeo Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedeo Air Four has no effect on the direction of Magnora ASA i.e., Magnora ASA and Amedeo Air go up and down completely randomly.
Pair Corralation between Magnora ASA and Amedeo Air
Assuming the 90 days trading horizon Magnora ASA is expected to generate 3.61 times more return on investment than Amedeo Air. However, Magnora ASA is 3.61 times more volatile than Amedeo Air Four. It trades about 0.1 of its potential returns per unit of risk. Amedeo Air Four is currently generating about 0.26 per unit of risk. If you would invest 2,325 in Magnora ASA on September 3, 2024 and sell it today you would earn a total of 180.00 from holding Magnora ASA or generate 7.74% 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. Amedeo Air Four
Performance |
| Timeline |
| Magnora ASA |
| Amedeo Air Four |
Magnora ASA and Amedeo Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Amedeo Air
The main advantage of trading using opposite Magnora ASA and Amedeo Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Amedeo Air 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 Amedeo Air will offset losses from the drop in Amedeo Air'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 |
| Amedeo Air vs. Catalyst Media Group | Amedeo Air vs. CATLIN GROUP | Amedeo Air vs. Magnora ASA | Amedeo Air 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |