Correlation Between Austevoll Seafood and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and SupplyMe Capital 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 SupplyMe Capital 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 SupplyMe Capital PLC, you can compare the effects of market volatilities on Austevoll Seafood and SupplyMe Capital 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 SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and SupplyMe Capital.
Diversification Opportunities for Austevoll Seafood and SupplyMe Capital
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and SupplyMe is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital 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 SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and SupplyMe Capital go up and down completely randomly.
Pair Corralation between Austevoll Seafood and SupplyMe Capital
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.2 times more return on investment than SupplyMe Capital. However, Austevoll Seafood ASA is 5.08 times less risky than SupplyMe Capital. It trades about 0.04 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about -0.03 per unit of risk. If you would invest 7,793 in Austevoll Seafood ASA on September 3, 2024 and sell it today you would earn a total of 2,290 from holding Austevoll Seafood ASA or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Austevoll Seafood ASA |
| SupplyMe Capital PLC |
Austevoll Seafood and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and SupplyMe Capital
The main advantage of trading using opposite Austevoll Seafood and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| Austevoll Seafood vs. Catalyst Media Group | Austevoll Seafood vs. CATLIN GROUP | Austevoll Seafood vs. Magnora ASA | Austevoll Seafood vs. RTW Venture Fund |
| SupplyMe Capital vs. Team Internet Group | SupplyMe Capital vs. Melia Hotels | SupplyMe Capital vs. PureTech Health plc | SupplyMe Capital vs. Charter Communications Cl |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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