Correlation Between Austevoll Seafood and ImmuPharma PLC
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and ImmuPharma PLC 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 ImmuPharma PLC 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 ImmuPharma PLC, you can compare the effects of market volatilities on Austevoll Seafood and ImmuPharma PLC 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 ImmuPharma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and ImmuPharma PLC.
Diversification Opportunities for Austevoll Seafood and ImmuPharma PLC
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and ImmuPharma is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ImmuPharma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuPharma 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 ImmuPharma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuPharma PLC has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and ImmuPharma PLC go up and down completely randomly.
Pair Corralation between Austevoll Seafood and ImmuPharma PLC
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.17 times more return on investment than ImmuPharma PLC. However, Austevoll Seafood ASA is 5.79 times less risky than ImmuPharma PLC. It trades about -0.01 of its potential returns per unit of risk. ImmuPharma PLC is currently generating about -0.16 per unit of risk. If you would invest 10,793 in Austevoll Seafood ASA on November 29, 2024 and sell it today you would lose (68.00) from holding Austevoll Seafood ASA or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. ImmuPharma PLC
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ImmuPharma PLC |
Austevoll Seafood and ImmuPharma PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and ImmuPharma PLC
The main advantage of trading using opposite Austevoll Seafood and ImmuPharma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, ImmuPharma PLC 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 ImmuPharma PLC will offset losses from the drop in ImmuPharma PLC's long position.| Austevoll Seafood vs. Ashtead Technology Holdings | Austevoll Seafood vs. Flow Traders NV | Austevoll Seafood vs. Check Point Software | Austevoll Seafood vs. Hochschild Mining plc |
| ImmuPharma PLC vs. Berner Kantonalbank AG | ImmuPharma PLC vs. Erste Group Bank | ImmuPharma PLC vs. Zurich Insurance Group | ImmuPharma PLC vs. Lloyds Banking 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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