Correlation Between Austevoll Seafood and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Agilent Technologies 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 Austevoll Seafood and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austevoll Seafood ASA and Agilent Technologies, you can compare the effects of market volatilities on Austevoll Seafood and Agilent Technologies 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 Austevoll Seafood with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Agilent Technologies.
Diversification Opportunities for Austevoll Seafood and Agilent Technologies
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and Agilent is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Austevoll Seafood 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 Austevoll Seafood ASA are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Agilent Technologies go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Agilent Technologies
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to under-perform the Agilent Technologies. In addition to that, Austevoll Seafood is 1.01 times more volatile than Agilent Technologies. It trades about -0.22 of its total potential returns per unit of risk. Agilent Technologies is currently generating about -0.2 per unit of volatility. If you would invest 14,348 in Agilent Technologies on October 10, 2024 and sell it today you would lose (652.00) from holding Agilent Technologies or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Agilent Technologies
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Agilent Technologies |
Austevoll Seafood and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Agilent Technologies
The main advantage of trading using opposite Austevoll Seafood and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| Austevoll Seafood vs. URU Metals | Austevoll Seafood vs. Capital Metals PLC | Austevoll Seafood vs. Lindsell Train Investment | Austevoll Seafood vs. First Class Metals |
| Agilent Technologies vs. Fair Oaks Income | Agilent Technologies vs. Qurate Retail Series | Agilent Technologies vs. Cairo Communication SpA | Agilent Technologies vs. Finnair Oyj |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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