Correlation Between Magnora ASA and AMG Advanced

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and AMG Advanced 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 AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Magnora ASA and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and AMG Advanced.

Diversification Opportunities for Magnora ASA and AMG Advanced

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Magnora and AMG is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Magnora ASA i.e., Magnora ASA and AMG Advanced go up and down completely randomly.

Pair Corralation between Magnora ASA and AMG Advanced

Assuming the 90 days trading horizon Magnora ASA is expected to generate 0.75 times more return on investment than AMG Advanced. However, Magnora ASA is 1.33 times less risky than AMG Advanced. It trades about 0.1 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about 0.0 per unit of risk. If you would invest  2,237  in Magnora ASA on September 3, 2024 and sell it today you would earn a total of  268.00  from holding Magnora ASA or generate 11.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Magnora ASA  vs.  AMG Advanced Metallurgical

 Performance 
       Timeline  
Magnora ASA 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Magnora ASA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Magnora ASA may actually be approaching a critical reversion point that can send shares even higher in January 2025.
AMG Advanced Metallu 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AMG Advanced Metallurgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AMG Advanced is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Magnora ASA and AMG Advanced Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Magnora ASA and AMG Advanced

The main advantage of trading using opposite Magnora ASA and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.
The idea behind Magnora ASA and AMG Advanced Metallurgical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities