Correlation Between Austevoll Seafood and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Beowulf 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 Beowulf 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 Beowulf Mining, you can compare the effects of market volatilities on Austevoll Seafood and Beowulf 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 Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Beowulf Mining.
Diversification Opportunities for Austevoll Seafood and Beowulf Mining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Beowulf is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Beowulf Mining go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Beowulf Mining
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.35 times more return on investment than Beowulf Mining. However, Austevoll Seafood ASA is 2.88 times less risky than Beowulf Mining. It trades about 0.04 of its potential returns per unit of risk. Beowulf Mining is currently generating about -0.07 per unit of risk. If you would invest 8,680 in Austevoll Seafood ASA on November 9, 2024 and sell it today you would earn a total of 2,150 from holding Austevoll Seafood ASA or generate 24.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Beowulf Mining
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Beowulf Mining |
Austevoll Seafood and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Beowulf Mining
The main advantage of trading using opposite Austevoll Seafood and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Beowulf 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Austevoll Seafood vs. Fair Oaks Income | Austevoll Seafood vs. International Biotechnology Trust | Austevoll Seafood vs. DXC Technology Co | Austevoll Seafood vs. Allianz Technology Trust |
| Beowulf Mining vs. Concurrent Technologies Plc | Beowulf Mining vs. Fulcrum Metals PLC | Beowulf Mining vs. SMA Solar Technology | Beowulf Mining vs. First Class Metals |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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