Correlation Between Magnora ASA and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Argentex Group 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 Argentex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Argentex Group PLC, you can compare the effects of market volatilities on Magnora ASA and Argentex Group 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 Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Argentex Group.
Diversification Opportunities for Magnora ASA and Argentex Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Argentex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC 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 Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Magnora ASA i.e., Magnora ASA and Argentex Group go up and down completely randomly.
Pair Corralation between Magnora ASA and Argentex Group
Assuming the 90 days trading horizon Magnora ASA is expected to generate 0.69 times more return on investment than Argentex Group. However, Magnora ASA is 1.45 times less risky than Argentex Group. It trades about 0.04 of its potential returns per unit of risk. Argentex Group PLC is currently generating about -0.02 per unit of risk. If you would invest 2,470 in Magnora ASA on September 13, 2024 and sell it today you would earn a total of 35.00 from holding Magnora ASA or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Magnora ASA vs. Argentex Group PLC
Performance |
| Timeline |
| Magnora ASA |
| Argentex Group PLC |
Magnora ASA and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Argentex Group
The main advantage of trading using opposite Magnora ASA and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Argentex Group 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Magnora ASA vs. Lowland Investment Co | Magnora ASA vs. Flow Traders NV | Magnora ASA vs. Auction Technology Group | Magnora ASA vs. Beeks Trading |
| Argentex Group vs. Catalyst Media Group | Argentex Group vs. CATLIN GROUP | Argentex Group vs. Tamburi Investment Partners | Argentex Group vs. Magnora ASA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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