Correlation Between Austevoll Seafood and Celebrus Technologies
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Celebrus Technologies 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 Celebrus Technologies 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 Celebrus Technologies plc, you can compare the effects of market volatilities on Austevoll Seafood and Celebrus Technologies 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 Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Celebrus Technologies.
Diversification Opportunities for Austevoll Seafood and Celebrus Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and Celebrus is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies plc 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 Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Celebrus Technologies go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Celebrus Technologies
Assuming the 90 days trading horizon Austevoll Seafood is expected to generate 3.22 times less return on investment than Celebrus Technologies. But when comparing it to its historical volatility, Austevoll Seafood ASA is 2.1 times less risky than Celebrus Technologies. It trades about 0.14 of its potential returns per unit of risk. Celebrus Technologies plc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 26,750 in Celebrus Technologies plc on August 28, 2024 and sell it today you would earn a total of 3,500 from holding Celebrus Technologies plc or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Celebrus Technologies plc
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Celebrus Technologies plc |
Austevoll Seafood and Celebrus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Celebrus Technologies
The main advantage of trading using opposite Austevoll Seafood and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Celebrus Technologies 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.| Austevoll Seafood vs. Elmos Semiconductor SE | Austevoll Seafood vs. Anglesey Mining | Austevoll Seafood vs. Neometals | Austevoll Seafood vs. Metals Exploration Plc |
| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Pensionbee Group PLC | Celebrus Technologies vs. Tracsis Plc | Celebrus Technologies vs. Eagle Eye Solutions |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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