Correlation Between Austevoll Seafood and Hansa Investment
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Hansa Investment 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 Hansa Investment 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 Hansa Investment, you can compare the effects of market volatilities on Austevoll Seafood and Hansa Investment 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 Hansa Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Hansa Investment.
Diversification Opportunities for Austevoll Seafood and Hansa Investment
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and Hansa is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Hansa Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Investment 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 Hansa Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Investment has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Hansa Investment go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Hansa Investment
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 1.05 times more return on investment than Hansa Investment. However, Austevoll Seafood is 1.05 times more volatile than Hansa Investment. It trades about 0.11 of its potential returns per unit of risk. Hansa Investment is currently generating about -0.12 per unit of risk. If you would invest 9,770 in Austevoll Seafood ASA on August 31, 2024 and sell it today you would earn a total of 313.00 from holding Austevoll Seafood ASA or generate 3.2% 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. Hansa Investment
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Hansa Investment |
Austevoll Seafood and Hansa Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Hansa Investment
The main advantage of trading using opposite Austevoll Seafood and Hansa Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Hansa Investment 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 Hansa Investment will offset losses from the drop in Hansa Investment's long position.| Austevoll Seafood vs. Beowulf Mining | Austevoll Seafood vs. Silvercorp Metals | Austevoll Seafood vs. Gamma Communications PLC | Austevoll Seafood vs. Aeorema Communications Plc |
| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. Legal General Group | Hansa Investment vs. TMT Investments PLC | Hansa Investment vs. Intermediate Capital 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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