Correlation Between Austevoll Seafood and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Concurrent 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 Concurrent 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 Concurrent Technologies Plc, you can compare the effects of market volatilities on Austevoll Seafood and Concurrent 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 Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Concurrent Technologies.
Diversification Opportunities for Austevoll Seafood and Concurrent Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and Concurrent is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Concurrent Technologies
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to under-perform the Concurrent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Austevoll Seafood ASA is 1.79 times less risky than Concurrent Technologies. The stock trades about -0.22 of its potential returns per unit of risk. The Concurrent Technologies Plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13,800 in Concurrent Technologies Plc on October 10, 2024 and sell it today you would earn a total of 50.00 from holding Concurrent Technologies Plc or generate 0.36% 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. Concurrent Technologies Plc
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Concurrent Technologies |
Austevoll Seafood and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Concurrent Technologies
The main advantage of trading using opposite Austevoll Seafood and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Concurrent 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Austevoll Seafood vs. URU Metals | Austevoll Seafood vs. Capital Metals PLC | Austevoll Seafood vs. Lindsell Train Investment | Austevoll Seafood vs. First Class Metals |
| Concurrent Technologies vs. Alien Metals | Concurrent Technologies vs. URU Metals | Concurrent Technologies vs. Gaztransport et Technigaz | Concurrent Technologies vs. Zurich Insurance 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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