Correlation Between Magnora ASA and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Wheaton Precious 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 Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Wheaton Precious Metals, you can compare the effects of market volatilities on Magnora ASA and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Wheaton Precious.
Diversification Opportunities for Magnora ASA and Wheaton Precious
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Wheaton is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Magnora ASA i.e., Magnora ASA and Wheaton Precious go up and down completely randomly.
Pair Corralation between Magnora ASA and Wheaton Precious
Assuming the 90 days trading horizon Magnora ASA is expected to generate 1.19 times more return on investment than Wheaton Precious. However, Magnora ASA is 1.19 times more volatile than Wheaton Precious Metals. It trades about 0.2 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about -0.1 per unit of risk. If you would invest 2,265 in Magnora ASA on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Magnora ASA or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Magnora ASA vs. Wheaton Precious Metals
Performance |
| Timeline |
| Magnora ASA |
| Wheaton Precious Metals |
Magnora ASA and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Wheaton Precious
The main advantage of trading using opposite Magnora ASA and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Magnora ASA vs. Uniper SE | Magnora ASA vs. Mulberry Group PLC | Magnora ASA vs. London Security Plc | Magnora ASA vs. Triad Group PLC |
| Wheaton Precious vs. Schroders Investment Trusts | Wheaton Precious vs. FC Investment Trust | Wheaton Precious vs. Hansa Investment | Wheaton Precious vs. Sligro Food Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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