Correlation Between Austevoll Seafood and L3Harris Technologies
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and L3Harris 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 L3Harris 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 L3Harris Technologies, you can compare the effects of market volatilities on Austevoll Seafood and L3Harris 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 L3Harris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and L3Harris Technologies.
Diversification Opportunities for Austevoll Seafood and L3Harris Technologies
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austevoll and L3Harris is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and L3Harris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L3Harris 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 L3Harris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L3Harris Technologies has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and L3Harris Technologies go up and down completely randomly.
Pair Corralation between Austevoll Seafood and L3Harris Technologies
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.76 times more return on investment than L3Harris Technologies. However, Austevoll Seafood ASA is 1.31 times less risky than L3Harris Technologies. It trades about 0.14 of its potential returns per unit of risk. L3Harris Technologies is currently generating about -0.08 per unit of risk. If you would invest 9,760 in Austevoll Seafood ASA on August 28, 2024 and sell it today you would earn a total of 388.00 from holding Austevoll Seafood ASA or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. L3Harris Technologies
Performance |
| Timeline |
| Austevoll Seafood ASA |
| L3Harris Technologies |
Austevoll Seafood and L3Harris Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and L3Harris Technologies
The main advantage of trading using opposite Austevoll Seafood and L3Harris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, L3Harris 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 L3Harris Technologies will offset losses from the drop in L3Harris Technologies' long position.| Austevoll Seafood vs. Elmos Semiconductor SE | Austevoll Seafood vs. Anglesey Mining | Austevoll Seafood vs. Neometals | Austevoll Seafood vs. Metals Exploration Plc |
| L3Harris Technologies vs. Samsung Electronics Co | L3Harris Technologies vs. Samsung Electronics Co | L3Harris Technologies vs. Hyundai Motor | L3Harris Technologies 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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