Correlation Between Telenor ASA and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Telenor ASA 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 Telenor ASA and Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA and Magnora ASA, you can compare the effects of market volatilities on Telenor ASA 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 Telenor ASA with a short position of Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Magnora ASA.
Diversification Opportunities for Telenor ASA and Magnora ASA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telenor and Magnora is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA 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 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 Telenor ASA i.e., Telenor ASA and Magnora ASA go up and down completely randomly.
Pair Corralation between Telenor ASA and Magnora ASA
Assuming the 90 days trading horizon Telenor ASA is expected to generate 0.83 times more return on investment than Magnora ASA. However, Telenor ASA is 1.21 times less risky than Magnora ASA. It trades about 0.25 of its potential returns per unit of risk. Magnora ASA is currently generating about -0.17 per unit of risk. If you would invest 16,130 in Telenor ASA on June 13, 2025 and sell it today you would earn a total of 730.00 from holding Telenor ASA or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telenor ASA vs. Magnora ASA
Performance |
| Timeline |
| Telenor ASA |
| Magnora ASA |
Telenor ASA and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Magnora ASA
The main advantage of trading using opposite Telenor ASA and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA 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.| Telenor ASA vs. Orkla ASA | Telenor ASA vs. DnB ASA | Telenor ASA vs. Yara International ASA | Telenor ASA vs. Storebrand 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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