Correlation Between Austevoll Seafood and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Zurich Insurance 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 Zurich Insurance 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 Zurich Insurance Group, you can compare the effects of market volatilities on Austevoll Seafood and Zurich Insurance 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 Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Zurich Insurance.
Diversification Opportunities for Austevoll Seafood and Zurich Insurance
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Zurich is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance 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 Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Zurich Insurance go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Zurich Insurance
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 1.48 times more return on investment than Zurich Insurance. However, Austevoll Seafood is 1.48 times more volatile than Zurich Insurance Group. It trades about 0.08 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about -0.11 per unit of risk. If you would invest 10,148 in Austevoll Seafood ASA on October 25, 2024 and sell it today you would earn a total of 382.00 from holding Austevoll Seafood ASA or generate 3.76% 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. Zurich Insurance Group
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Zurich Insurance |
Austevoll Seafood and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Zurich Insurance
The main advantage of trading using opposite Austevoll Seafood and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| Austevoll Seafood vs. BE Semiconductor Industries | Austevoll Seafood vs. Young Cos Brewery | Austevoll Seafood vs. Nordic Semiconductor ASA | Austevoll Seafood vs. Teradata Corp |
| Zurich Insurance vs. Xeros Technology Group | Zurich Insurance vs. LPKF Laser Electronics | Zurich Insurance vs. Take Two Interactive Software | Zurich Insurance vs. Creo Medical 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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