Correlation Between Magnora ASA and Beeks Trading
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Beeks Trading 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 Beeks Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Beeks Trading, you can compare the effects of market volatilities on Magnora ASA and Beeks Trading 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 Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Beeks Trading.
Diversification Opportunities for Magnora ASA and Beeks Trading
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnora and Beeks is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading 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 Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of Magnora ASA i.e., Magnora ASA and Beeks Trading go up and down completely randomly.
Pair Corralation between Magnora ASA and Beeks Trading
Assuming the 90 days trading horizon Magnora ASA is expected to generate 0.75 times more return on investment than Beeks Trading. However, Magnora ASA is 1.33 times less risky than Beeks Trading. It trades about 0.27 of its potential returns per unit of risk. Beeks Trading is currently generating about 0.17 per unit of risk. If you would invest 2,475 in Magnora ASA on September 24, 2024 and sell it today you would earn a total of 285.00 from holding Magnora ASA or generate 11.52% 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. Beeks Trading
Performance |
| Timeline |
| Magnora ASA |
| Beeks Trading |
Magnora ASA and Beeks Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Beeks Trading
The main advantage of trading using opposite Magnora ASA and Beeks Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Beeks Trading 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 Beeks Trading will offset losses from the drop in Beeks Trading's long position.| Magnora ASA vs. Austevoll Seafood ASA | Magnora ASA vs. DXC Technology Co | Magnora ASA vs. PPHE Hotel Group | Magnora ASA vs. Roebuck Food Group |
| Beeks Trading vs. Catalyst Media Group | Beeks Trading vs. CATLIN GROUP | Beeks Trading vs. Tamburi Investment Partners | Beeks Trading 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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