Correlation Between Magnora ASA and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Everyman Media 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 Everyman Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Everyman Media Group, you can compare the effects of market volatilities on Magnora ASA and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Everyman Media.
Diversification Opportunities for Magnora ASA and Everyman Media
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Everyman is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Magnora ASA i.e., Magnora ASA and Everyman Media go up and down completely randomly.
Pair Corralation between Magnora ASA and Everyman Media
Assuming the 90 days trading horizon Magnora ASA is expected to generate 1.66 times more return on investment than Everyman Media. However, Magnora ASA is 1.66 times more volatile than Everyman Media Group. It trades about -0.02 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.11 per unit of risk. If you would invest 2,470 in Magnora ASA on September 12, 2024 and sell it today you would lose (35.00) from holding Magnora ASA or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Magnora ASA vs. Everyman Media Group
Performance |
| Timeline |
| Magnora ASA |
| Everyman Media Group |
Magnora ASA and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Everyman Media
The main advantage of trading using opposite Magnora ASA and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Magnora ASA vs. Hong Kong Land | Magnora ASA vs. Neometals | Magnora ASA vs. Coor Service Management | Magnora ASA vs. Fidelity Sustainable USD |
| Everyman Media vs. Catalyst Media Group | Everyman Media vs. CATLIN GROUP | Everyman Media vs. Tamburi Investment Partners | Everyman Media 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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