Correlation Between Magnora ASA and Nordic Unmanned
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Nordic Unmanned 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 Nordic Unmanned into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Nordic Unmanned As, you can compare the effects of market volatilities on Magnora ASA and Nordic Unmanned 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 Nordic Unmanned. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Nordic Unmanned.
Diversification Opportunities for Magnora ASA and Nordic Unmanned
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnora and Nordic is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Nordic Unmanned As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Unmanned As 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 Nordic Unmanned. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Unmanned As has no effect on the direction of Magnora ASA i.e., Magnora ASA and Nordic Unmanned go up and down completely randomly.
Pair Corralation between Magnora ASA and Nordic Unmanned
Assuming the 90 days trading horizon Magnora ASA is expected to generate 0.23 times more return on investment than Nordic Unmanned. However, Magnora ASA is 4.42 times less risky than Nordic Unmanned. It trades about 0.05 of its potential returns per unit of risk. Nordic Unmanned As is currently generating about -0.06 per unit of risk. If you would invest 1,577 in Magnora ASA on September 3, 2024 and sell it today you would earn a total of 928.00 from holding Magnora ASA or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnora ASA vs. Nordic Unmanned As
Performance |
| Timeline |
| Magnora ASA |
| Nordic Unmanned As |
Magnora ASA and Nordic Unmanned Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnora ASA and Nordic Unmanned
The main advantage of trading using opposite Magnora ASA and Nordic Unmanned positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Nordic Unmanned 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 Nordic Unmanned will offset losses from the drop in Nordic Unmanned's long position.| Magnora ASA vs. Aker Horizons AS | Magnora ASA vs. REC Silicon ASA | Magnora ASA vs. Vow ASA | Magnora ASA vs. Saga Pure ASA |
| Nordic Unmanned vs. Kongsberg Gruppen ASA | Nordic Unmanned vs. Elkem ASA | Nordic Unmanned vs. Integrated Wind Solutions | Nordic Unmanned vs. Vow 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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