Correlation Between Magnora ASA and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Liontrust Asset 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 Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Liontrust Asset Management, you can compare the effects of market volatilities on Magnora ASA and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Liontrust Asset.
Diversification Opportunities for Magnora ASA and Liontrust Asset
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Magnora and Liontrust is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Magnora ASA i.e., Magnora ASA and Liontrust Asset go up and down completely randomly.
Pair Corralation between Magnora ASA and Liontrust Asset
Assuming the 90 days trading horizon Magnora ASA is expected to generate 2.51 times more return on investment than Liontrust Asset. However, Magnora ASA is 2.51 times more volatile than Liontrust Asset Management. It trades about 0.02 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about 0.0 per unit of risk. If you would invest 2,740 in Magnora ASA on September 14, 2024 and sell it today you would lose (235.00) from holding Magnora ASA or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Liontrust Asset Management
Performance |
| Timeline |
| Magnora ASA |
| Liontrust Asset Mana |
Magnora ASA and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Liontrust Asset
The main advantage of trading using opposite Magnora ASA and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Magnora ASA vs. Aurora Investment Trust | Magnora ASA vs. Fevertree Drinks Plc | Magnora ASA vs. Monster Beverage Corp | Magnora ASA vs. Hansa Investment |
| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. CATLIN GROUP | Liontrust Asset vs. Tamburi Investment Partners | Liontrust Asset 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |