Correlation Between Austevoll Seafood and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Sealed Air 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 Sealed Air 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 Sealed Air Corp, you can compare the effects of market volatilities on Austevoll Seafood and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Sealed Air.
Diversification Opportunities for Austevoll Seafood and Sealed Air
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and Sealed is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Sealed Air Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air Corp has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Sealed Air go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Sealed Air
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.73 times more return on investment than Sealed Air. However, Austevoll Seafood ASA is 1.37 times less risky than Sealed Air. It trades about 0.02 of its potential returns per unit of risk. Sealed Air Corp is currently generating about -0.03 per unit of risk. If you would invest 8,618 in Austevoll Seafood ASA on October 16, 2024 and sell it today you would earn a total of 1,152 from holding Austevoll Seafood ASA or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.75% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Sealed Air Corp
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Sealed Air Corp |
Austevoll Seafood and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Sealed Air
The main advantage of trading using opposite Austevoll Seafood and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Austevoll Seafood vs. Grieg Seafood | Austevoll Seafood vs. Molson Coors Beverage | Austevoll Seafood vs. Dairy Farm International | Austevoll Seafood vs. Pets at Home |
| Sealed Air vs. Axfood AB | Sealed Air vs. Austevoll Seafood ASA | Sealed Air vs. Prosiebensat 1 Media | Sealed Air vs. Hilton Food Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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