Correlation Between Austevoll Seafood and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Compal Electronics 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 Compal Electronics 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 Compal Electronics GDR, you can compare the effects of market volatilities on Austevoll Seafood and Compal Electronics 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 Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Compal Electronics.
Diversification Opportunities for Austevoll Seafood and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austevoll and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR 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 Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Compal Electronics go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Compal Electronics
If you would invest 9,917 in Austevoll Seafood ASA on September 18, 2024 and sell it today you would lose (4.00) from holding Austevoll Seafood ASA or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Compal Electronics GDR
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Compal Electronics GDR |
Austevoll Seafood and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Compal Electronics
The main advantage of trading using opposite Austevoll Seafood and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' 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 |
| Compal Electronics vs. Neometals | Compal Electronics vs. Grieg Seafood | Compal Electronics vs. Blackrock World Mining | Compal Electronics vs. Austevoll Seafood ASA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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