Correlation Between Bell Food and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Bell Food and Austevoll Seafood 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 Bell Food and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Austevoll Seafood ASA, you can compare the effects of market volatilities on Bell Food and Austevoll Seafood 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 Bell Food with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Austevoll Seafood.
Diversification Opportunities for Bell Food and Austevoll Seafood
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bell and Austevoll is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and Bell Food 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 Bell Food Group are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Bell Food i.e., Bell Food and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Bell Food and Austevoll Seafood
Assuming the 90 days trading horizon Bell Food is expected to generate 20.43 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Bell Food Group is 1.38 times less risky than Austevoll Seafood. It trades about 0.0 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,610 in Austevoll Seafood ASA on September 1, 2024 and sell it today you would earn a total of 2,473 from holding Austevoll Seafood ASA or generate 32.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.94% |
| Values | Daily Returns |
Bell Food Group vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Bell Food Group |
| Austevoll Seafood ASA |
Bell Food and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Austevoll Seafood
The main advantage of trading using opposite Bell Food and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Bell Food vs. Odyssean Investment Trust | Bell Food vs. Flutter Entertainment PLC | Bell Food vs. New Residential Investment | Bell Food vs. Taylor Maritime Investments |
| Austevoll Seafood vs. Cizzle Biotechnology Holdings | Austevoll Seafood vs. Auction Technology Group | Austevoll Seafood vs. The Mercantile Investment | Austevoll Seafood vs. Polar Capital Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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