Correlation Between Austevoll Seafood and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Hong Kong 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 Hong Kong 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 Hong Kong Land, you can compare the effects of market volatilities on Austevoll Seafood and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Hong Kong.
Diversification Opportunities for Austevoll Seafood and Hong Kong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austevoll and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Hong Kong go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Hong Kong
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 11.38 times more return on investment than Hong Kong. However, Austevoll Seafood is 11.38 times more volatile than Hong Kong Land. It trades about 0.04 of its potential returns per unit of risk. Hong Kong Land is currently generating about 0.08 per unit of risk. If you would invest 7,835 in Austevoll Seafood ASA on September 13, 2024 and sell it today you would earn a total of 2,370 from holding Austevoll Seafood ASA or generate 30.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Hong Kong Land
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Hong Kong Land |
Austevoll Seafood and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Hong Kong
The main advantage of trading using opposite Austevoll Seafood and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Austevoll Seafood vs. Young Cos Brewery | Austevoll Seafood vs. Telecom Italia SpA | Austevoll Seafood vs. Monster Beverage Corp | Austevoll Seafood vs. Cairo Communication SpA |
| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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