Correlation Between Austevoll Seafood and Blackrock World
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Blackrock World 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 Blackrock World 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 Blackrock World Mining, you can compare the effects of market volatilities on Austevoll Seafood and Blackrock World 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 Blackrock World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Blackrock World.
Diversification Opportunities for Austevoll Seafood and Blackrock World
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Blackrock is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Blackrock World Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock World 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 Blackrock World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock World Mining has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Blackrock World go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Blackrock World
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 1.11 times more return on investment than Blackrock World. However, Austevoll Seafood is 1.11 times more volatile than Blackrock World Mining. It trades about 0.4 of its potential returns per unit of risk. Blackrock World Mining is currently generating about 0.09 per unit of risk. If you would invest 9,878 in Austevoll Seafood ASA on November 3, 2024 and sell it today you would earn a total of 1,187 from holding Austevoll Seafood ASA or generate 12.02% 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. Blackrock World Mining
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Blackrock World Mining |
Austevoll Seafood and Blackrock World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Blackrock World
The main advantage of trading using opposite Austevoll Seafood and Blackrock World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Blackrock World 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 Blackrock World will offset losses from the drop in Blackrock World's long position.| Austevoll Seafood vs. Empire Metals Limited | Austevoll Seafood vs. URU Metals | Austevoll Seafood vs. Endeavour Mining Corp | Austevoll Seafood vs. First Class Metals |
| Blackrock World vs. Canadian General Investments | Blackrock World vs. Travel Leisure Co | Blackrock World vs. Mobius Investment Trust | Blackrock World vs. Indutrade AB |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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