Correlation Between Secure Property and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Secure Property 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 Secure Property and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secure Property Development and Magnora ASA, you can compare the effects of market volatilities on Secure Property 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 Secure Property with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secure Property and Magnora ASA.
Diversification Opportunities for Secure Property and Magnora ASA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Secure and Magnora is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Secure Property Development and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Secure Property 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 Secure Property Development 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 Secure Property i.e., Secure Property and Magnora ASA go up and down completely randomly.
Pair Corralation between Secure Property and Magnora ASA
Assuming the 90 days trading horizon Secure Property Development is expected to under-perform the Magnora ASA. But the stock apears to be less risky and, when comparing its historical volatility, Secure Property Development is 3.25 times less risky than Magnora ASA. The stock trades about -0.03 of its potential returns per unit of risk. The Magnora ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,823 in Magnora ASA on September 3, 2024 and sell it today you would earn a total of 682.00 from holding Magnora ASA or generate 37.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.39% |
| Values | Daily Returns |
Secure Property Development vs. Magnora ASA
Performance |
| Timeline |
| Secure Property Deve |
| Magnora ASA |
Secure Property and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secure Property and Magnora ASA
The main advantage of trading using opposite Secure Property and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secure Property 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.| Secure Property vs. Induction Healthcare Group | Secure Property vs. Spire Healthcare Group | Secure Property vs. Worldwide Healthcare Trust | Secure Property vs. Planet Fitness Cl |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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