Correlation Between Aker Horizons and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Aker Horizons 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 Aker Horizons and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Horizons AS and Magnora ASA, you can compare the effects of market volatilities on Aker Horizons 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 Aker Horizons with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Horizons and Magnora ASA.
Diversification Opportunities for Aker Horizons and Magnora ASA
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aker and Magnora is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aker Horizons AS and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA and Aker Horizons 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 Aker Horizons AS 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 Aker Horizons i.e., Aker Horizons and Magnora ASA go up and down completely randomly.
Pair Corralation between Aker Horizons and Magnora ASA
Assuming the 90 days trading horizon Aker Horizons AS is expected to under-perform the Magnora ASA. In addition to that, Aker Horizons is 2.54 times more volatile than Magnora ASA. It trades about -0.07 of its total potential returns per unit of risk. Magnora ASA is currently generating about -0.01 per unit of volatility. If you would invest 2,687 in Magnora ASA on June 12, 2025 and sell it today you would lose (422.00) from holding Magnora ASA or give up 15.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Horizons AS vs. Magnora ASA
Performance |
| Timeline |
| Aker Horizons AS |
| Magnora ASA |
Aker Horizons and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Horizons and Magnora ASA
The main advantage of trading using opposite Aker Horizons and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Horizons 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.| Aker Horizons vs. Aker Carbon Capture | Aker Horizons vs. Aker BP ASA | Aker Horizons vs. Aker Solutions ASA | Aker Horizons vs. REC Silicon ASA |
| Magnora ASA vs. Aker Horizons AS | Magnora ASA vs. REC Silicon ASA | Magnora ASA vs. Vow ASA | Magnora ASA vs. Saga Pure 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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