Correlation Between Magnora ASA and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Magnora ASA and Grand Vision 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 Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnora ASA and Grand Vision Media, you can compare the effects of market volatilities on Magnora ASA and Grand Vision 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 Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnora ASA and Grand Vision.
Diversification Opportunities for Magnora ASA and Grand Vision
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magnora and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magnora ASA and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media 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 Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Magnora ASA i.e., Magnora ASA and Grand Vision go up and down completely randomly.
Pair Corralation between Magnora ASA and Grand Vision
Assuming the 90 days trading horizon Magnora ASA is expected to generate 0.56 times more return on investment than Grand Vision. However, Magnora ASA is 1.77 times less risky than Grand Vision. It trades about 0.05 of its potential returns per unit of risk. Grand Vision Media is currently generating about -0.12 per unit of risk. If you would invest 2,321 in Magnora ASA on September 12, 2024 and sell it today you would earn a total of 114.00 from holding Magnora ASA or generate 4.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Magnora ASA vs. Grand Vision Media
Performance |
Timeline |
Magnora ASA |
Grand Vision Media |
Magnora ASA and Grand Vision Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Magnora ASA and Grand Vision
The main advantage of trading using opposite Magnora ASA and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnora ASA position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.Magnora ASA vs. Hong Kong Land | Magnora ASA vs. Neometals | Magnora ASA vs. Coor Service Management | Magnora ASA vs. Fidelity Sustainable USD |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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