Correlation Between Magnora ASA and Flowtech Fluidpower
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Flowtech Fluidpower 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 Flowtech Fluidpower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Flowtech Fluidpower plc, you can compare the effects of market volatilities on Magnora ASA and Flowtech Fluidpower 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 Flowtech Fluidpower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Flowtech Fluidpower.
Diversification Opportunities for Magnora ASA and Flowtech Fluidpower
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Magnora and Flowtech is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Flowtech Fluidpower plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowtech Fluidpower 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 Flowtech Fluidpower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowtech Fluidpower plc has no effect on the direction of Magnora ASA i.e., Magnora ASA and Flowtech Fluidpower go up and down completely randomly.
Pair Corralation between Magnora ASA and Flowtech Fluidpower
Assuming the 90 days trading horizon Magnora ASA is expected to generate 2.36 times more return on investment than Flowtech Fluidpower. However, Magnora ASA is 2.36 times more volatile than Flowtech Fluidpower plc. It trades about 0.01 of its potential returns per unit of risk. Flowtech Fluidpower plc is currently generating about -0.05 per unit of risk. If you would invest 2,965 in Magnora ASA on September 3, 2024 and sell it today you would lose (460.00) from holding Magnora ASA or give up 15.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.67% |
| Values | Daily Returns |
Magnora ASA vs. Flowtech Fluidpower plc
Performance |
| Timeline |
| Magnora ASA |
| Flowtech Fluidpower plc |
Magnora ASA and Flowtech Fluidpower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Flowtech Fluidpower
The main advantage of trading using opposite Magnora ASA and Flowtech Fluidpower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Flowtech Fluidpower 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 Flowtech Fluidpower will offset losses from the drop in Flowtech Fluidpower's long position.| Magnora ASA vs. Catalyst Media Group | Magnora ASA vs. CATLIN GROUP | Magnora ASA vs. RTW Venture Fund | Magnora ASA vs. Secure Property Development |
| Flowtech Fluidpower vs. Catalyst Media Group | Flowtech Fluidpower vs. CATLIN GROUP | Flowtech Fluidpower vs. Magnora ASA | Flowtech Fluidpower vs. RTW Venture Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |