Correlation Between Team Internet and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Team Internet 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 Team Internet and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Team Internet Group and Magnora ASA, you can compare the effects of market volatilities on Team Internet 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 Team Internet with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team Internet and Magnora ASA.
Diversification Opportunities for Team Internet and Magnora ASA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Team and Magnora is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Team Internet Group and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Team Internet 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 Team Internet Group 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 Team Internet i.e., Team Internet and Magnora ASA go up and down completely randomly.
Pair Corralation between Team Internet and Magnora ASA
Assuming the 90 days trading horizon Team Internet Group is expected to generate 1.4 times more return on investment than Magnora ASA. However, Team Internet is 1.4 times more volatile than Magnora ASA. It trades about 0.15 of its potential returns per unit of risk. Magnora ASA is currently generating about 0.12 per unit of risk. If you would invest 8,520 in Team Internet Group on September 15, 2024 and sell it today you would earn a total of 770.00 from holding Team Internet Group or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Team Internet Group vs. Magnora ASA
Performance |
| Timeline |
| Team Internet Group |
| Magnora ASA |
Team Internet and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Team Internet and Magnora ASA
The main advantage of trading using opposite Team Internet and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team Internet 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.| Team Internet vs. SM Energy Co | Team Internet vs. FuelCell Energy | Team Internet vs. Grand Vision Media | Team Internet vs. Overstock |
| Magnora ASA vs. Team Internet Group | Magnora ASA vs. Charter Communications Cl | Magnora ASA vs. Diversified Energy | Magnora ASA vs. Monster Beverage Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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