Correlation Between Austevoll Seafood and United Airlines
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and United Airlines 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 United Airlines 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 United Airlines Holdings, you can compare the effects of market volatilities on Austevoll Seafood and United Airlines 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 United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and United Airlines.
Diversification Opportunities for Austevoll Seafood and United Airlines
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and United is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and United Airlines go up and down completely randomly.
Pair Corralation between Austevoll Seafood and United Airlines
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.6 times more return on investment than United Airlines. However, Austevoll Seafood ASA is 1.67 times less risky than United Airlines. It trades about 0.49 of its potential returns per unit of risk. United Airlines Holdings is currently generating about 0.19 per unit of risk. If you would invest 9,725 in Austevoll Seafood ASA on November 5, 2024 and sell it today you would earn a total of 1,340 from holding Austevoll Seafood ASA or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. United Airlines Holdings
Performance |
| Timeline |
| Austevoll Seafood ASA |
| United Airlines Holdings |
Austevoll Seafood and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and United Airlines
The main advantage of trading using opposite Austevoll Seafood and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Toyota Motor Corp | Austevoll Seafood vs. Reliance Industries Ltd |
| United Airlines vs. Norwegian Air Shuttle | United Airlines vs. Polar Capital Technology | United Airlines vs. Allianz Technology Trust | United Airlines vs. Spotify Technology SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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