Correlation Between Austevoll Seafood and Aberdeen Diversified
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Aberdeen Diversified 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 Aberdeen Diversified 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 Aberdeen Diversified Income, you can compare the effects of market volatilities on Austevoll Seafood and Aberdeen Diversified 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 Aberdeen Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Aberdeen Diversified.
Diversification Opportunities for Austevoll Seafood and Aberdeen Diversified
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Aberdeen is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Aberdeen Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Diversified 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 Aberdeen Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Diversified has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Aberdeen Diversified go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Aberdeen Diversified
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 1.16 times more return on investment than Aberdeen Diversified. However, Austevoll Seafood is 1.16 times more volatile than Aberdeen Diversified Income. It trades about 0.03 of its potential returns per unit of risk. Aberdeen Diversified Income is currently generating about 0.01 per unit of risk. If you would invest 8,277 in Austevoll Seafood ASA on September 22, 2024 and sell it today you would earn a total of 1,311 from holding Austevoll Seafood ASA or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Aberdeen Diversified Income
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Aberdeen Diversified |
Austevoll Seafood and Aberdeen Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Aberdeen Diversified
The main advantage of trading using opposite Austevoll Seafood and Aberdeen Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Aberdeen Diversified 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 Aberdeen Diversified will offset losses from the drop in Aberdeen Diversified's long position.| Austevoll Seafood vs. Uniper SE | Austevoll Seafood vs. Mulberry Group PLC | Austevoll Seafood vs. London Security Plc | Austevoll Seafood vs. Triad Group PLC |
| Aberdeen Diversified vs. CATCo Reinsurance Opportunities | Aberdeen Diversified vs. BH Macro Limited | Aberdeen Diversified vs. Fair Oaks Income | Aberdeen Diversified vs. Legal General 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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