Correlation Between Austevoll Seafood and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Monster Beverage 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 Monster Beverage 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 Monster Beverage Corp, you can compare the effects of market volatilities on Austevoll Seafood and Monster Beverage 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 Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Monster Beverage.
Diversification Opportunities for Austevoll Seafood and Monster Beverage
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Monster is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp 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 Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Monster Beverage go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Monster Beverage
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.76 times more return on investment than Monster Beverage. However, Austevoll Seafood ASA is 1.32 times less risky than Monster Beverage. It trades about 0.22 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.08 per unit of risk. If you would invest 9,486 in Austevoll Seafood ASA on September 4, 2024 and sell it today you would earn a total of 577.00 from holding Austevoll Seafood ASA or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Monster Beverage Corp
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Monster Beverage Corp |
Austevoll Seafood and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Monster Beverage
The main advantage of trading using opposite Austevoll Seafood and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage's long position.| Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Hyundai Motor | Austevoll Seafood vs. Toyota Motor Corp |
| Monster Beverage vs. Samsung Electronics Co | Monster Beverage vs. Samsung Electronics Co | Monster Beverage vs. Hyundai Motor | Monster Beverage vs. Toyota Motor Corp |
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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