Correlation Between Austevoll Seafood and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on Austevoll Seafood and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Eastinco Mining.
Diversification Opportunities for Austevoll Seafood and Eastinco Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Eastinco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Eastinco Mining go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Eastinco Mining
Assuming the 90 days trading horizon Austevoll Seafood is expected to generate 18.15 times less return on investment than Eastinco Mining. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.47 times less risky than Eastinco Mining. It trades about 0.0 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,900 in Eastinco Mining Exploration on September 18, 2024 and sell it today you would earn a total of 50.00 from holding Eastinco Mining Exploration or generate 1.02% 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. Eastinco Mining Exploration
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Eastinco Mining Expl |
Austevoll Seafood and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Eastinco Mining
The main advantage of trading using opposite Austevoll Seafood and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Hyundai Motor | Austevoll Seafood vs. Reliance Industries Ltd |
| Eastinco Mining vs. Austevoll Seafood ASA | Eastinco Mining vs. UNIQA Insurance Group | Eastinco Mining vs. CleanTech Lithium plc | Eastinco Mining vs. Leroy Seafood 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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