Correlation Between Magnora ASA and Telecom Plus
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Telecom Plus 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 Telecom Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Telecom Plus PLC, you can compare the effects of market volatilities on Magnora ASA and Telecom Plus 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 Telecom Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Telecom Plus.
Diversification Opportunities for Magnora ASA and Telecom Plus
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Magnora and Telecom is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Telecom Plus PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Plus 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 Telecom Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Plus PLC has no effect on the direction of Magnora ASA i.e., Magnora ASA and Telecom Plus go up and down completely randomly.
Pair Corralation between Magnora ASA and Telecom Plus
Assuming the 90 days trading horizon Magnora ASA is expected to generate 4.0 times more return on investment than Telecom Plus. However, Magnora ASA is 4.0 times more volatile than Telecom Plus PLC. It trades about 0.02 of its potential returns per unit of risk. Telecom Plus PLC is currently generating about 0.06 per unit of risk. If you would invest 2,774 in Magnora ASA on September 12, 2024 and sell it today you would lose (269.00) from holding Magnora ASA or give up 9.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Telecom Plus PLC
Performance |
| Timeline |
| Magnora ASA |
| Telecom Plus PLC |
Magnora ASA and Telecom Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Telecom Plus
The main advantage of trading using opposite Magnora ASA and Telecom Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Telecom Plus 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 Telecom Plus will offset losses from the drop in Telecom Plus' long position.| Magnora ASA vs. Hong Kong Land | Magnora ASA vs. Neometals | Magnora ASA vs. Coor Service Management | Magnora ASA vs. Fidelity Sustainable USD |
| Telecom Plus vs. Diversified Energy | Telecom Plus vs. Intuitive Investments Group | Telecom Plus vs. Federal Realty Investment | Telecom Plus vs. GreenX Metals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |