Correlation Between Magnora ASA and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Bellevue Healthcare 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 Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Bellevue Healthcare Trust, you can compare the effects of market volatilities on Magnora ASA and Bellevue Healthcare 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 Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Bellevue Healthcare.
Diversification Opportunities for Magnora ASA and Bellevue Healthcare
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Bellevue is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust 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 Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Magnora ASA i.e., Magnora ASA and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Magnora ASA and Bellevue Healthcare
Assuming the 90 days trading horizon Magnora ASA is expected to generate 1.5 times more return on investment than Bellevue Healthcare. However, Magnora ASA is 1.5 times more volatile than Bellevue Healthcare Trust. It trades about 0.18 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.15 per unit of risk. If you would invest 2,475 in Magnora ASA on September 20, 2024 and sell it today you would earn a total of 200.00 from holding Magnora ASA or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Magnora ASA |
| Bellevue Healthcare Trust |
Magnora ASA and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Bellevue Healthcare
The main advantage of trading using opposite Magnora ASA and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Bellevue Healthcare 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 Bellevue Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Magnora ASA vs. Samsung Electronics Co | Magnora ASA vs. Samsung Electronics Co | Magnora ASA vs. Hyundai Motor | Magnora ASA vs. Reliance Industries Ltd |
| Bellevue Healthcare vs. Catalyst Media Group | Bellevue Healthcare vs. CATLIN GROUP | Bellevue Healthcare vs. Tamburi Investment Partners | Bellevue Healthcare 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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