Correlation Between Magnora ASA and Blackrock World
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Blackrock World 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 Blackrock World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Blackrock World Mining, you can compare the effects of market volatilities on Magnora ASA and Blackrock World 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 Blackrock World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Blackrock World.
Diversification Opportunities for Magnora ASA and Blackrock World
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magnora and Blackrock is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Blackrock World Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock World Mining 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 Blackrock World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock World Mining has no effect on the direction of Magnora ASA i.e., Magnora ASA and Blackrock World go up and down completely randomly.
Pair Corralation between Magnora ASA and Blackrock World
Assuming the 90 days trading horizon Magnora ASA is expected to under-perform the Blackrock World. In addition to that, Magnora ASA is 1.67 times more volatile than Blackrock World Mining. It trades about -0.13 of its total potential returns per unit of risk. Blackrock World Mining is currently generating about 0.25 per unit of volatility. If you would invest 48,150 in Blackrock World Mining on October 23, 2024 and sell it today you would earn a total of 2,250 from holding Blackrock World Mining or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Blackrock World Mining
Performance |
| Timeline |
| Magnora ASA |
| Blackrock World Mining |
Magnora ASA and Blackrock World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Blackrock World
The main advantage of trading using opposite Magnora ASA and Blackrock World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Blackrock World 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 Blackrock World will offset losses from the drop in Blackrock World's long position.| Magnora ASA vs. AMG Advanced Metallurgical | Magnora ASA vs. Optima Health plc | Magnora ASA vs. HCA Healthcare | Magnora ASA vs. Naturhouse Health SA |
| Blackrock World vs. Catalyst Media Group | Blackrock World vs. CATLIN GROUP | Blackrock World vs. Tamburi Investment Partners | Blackrock World 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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