Correlation Between Telenor ASA and Masoval AS
Can any of the company-specific risk be diversified away by investing in both Telenor ASA and Masoval AS 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 Telenor ASA and Masoval AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA and Masoval AS, you can compare the effects of market volatilities on Telenor ASA and Masoval AS 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 Telenor ASA with a short position of Masoval AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Masoval AS.
Diversification Opportunities for Telenor ASA and Masoval AS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telenor and Masoval is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA and Masoval AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masoval AS and Telenor 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 Telenor ASA are associated (or correlated) with Masoval AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masoval AS has no effect on the direction of Telenor ASA i.e., Telenor ASA and Masoval AS go up and down completely randomly.
Pair Corralation between Telenor ASA and Masoval AS
Assuming the 90 days trading horizon Telenor ASA is expected to under-perform the Masoval AS. But the stock apears to be less risky and, when comparing its historical volatility, Telenor ASA is 1.99 times less risky than Masoval AS. The stock trades about -0.15 of its potential returns per unit of risk. The Masoval AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,740 in Masoval AS on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Masoval AS or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Telenor ASA vs. Masoval AS
Performance |
| Timeline |
| Telenor ASA |
| Masoval AS |
Telenor ASA and Masoval AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Masoval AS
The main advantage of trading using opposite Telenor ASA and Masoval AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA position performs unexpectedly, Masoval AS 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 Masoval AS will offset losses from the drop in Masoval AS's long position.| Telenor ASA vs. Orkla ASA | Telenor ASA vs. DnB ASA | Telenor ASA vs. Yara International ASA | Telenor ASA vs. Storebrand ASA |
| Masoval AS vs. Andfjord Salmon AS | Masoval AS vs. Elkem ASA | Masoval AS vs. Integrated Wind Solutions | Masoval AS 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets |