Correlation Between Mobius Investment and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Mobius Investment and Magnora ASA 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 Mobius Investment and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobius Investment Trust and Magnora ASA, you can compare the effects of market volatilities on Mobius Investment and Magnora ASA 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 Mobius Investment with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobius Investment and Magnora ASA.
Diversification Opportunities for Mobius Investment and Magnora ASA
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobius and Magnora is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mobius Investment Trust and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Mobius Investment 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 Mobius Investment Trust are associated (or correlated) with Magnora ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnora ASA has no effect on the direction of Mobius Investment i.e., Mobius Investment and Magnora ASA go up and down completely randomly.
Pair Corralation between Mobius Investment and Magnora ASA
Assuming the 90 days trading horizon Mobius Investment is expected to generate 2.69 times less return on investment than Magnora ASA. But when comparing it to its historical volatility, Mobius Investment Trust is 1.87 times less risky than Magnora ASA. It trades about 0.08 of its potential returns per unit of risk. Magnora ASA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Magnora ASA on October 30, 2024 and sell it today you would earn a total of 325.00 from holding Magnora ASA or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Mobius Investment Trust vs. Magnora ASA
Performance |
| Timeline |
| Mobius Investment Trust |
| Magnora ASA |
Mobius Investment and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobius Investment and Magnora ASA
The main advantage of trading using opposite Mobius Investment and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobius Investment position performs unexpectedly, Magnora ASA 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 Magnora ASA will offset losses from the drop in Magnora ASA's long position.| Mobius Investment vs. AfriTin Mining | Mobius Investment vs. Sealed Air Corp | Mobius Investment vs. Blackrock World Mining | Mobius Investment vs. Lundin Mining Corp |
| Magnora ASA vs. Austevoll Seafood ASA | Magnora ASA vs. Synchrony Financial | Magnora ASA vs. Raymond James Financial | Magnora ASA vs. Dairy Farm International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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