Correlation Between Global Ship and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Global Ship 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 Global Ship and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Austevoll Seafood ASA, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Austevoll Seafood.
Diversification Opportunities for Global Ship and Austevoll Seafood
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Austevoll is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease 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 Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Global Ship and Austevoll Seafood
Assuming the 90 days horizon Global Ship Lease is expected to under-perform the Austevoll Seafood. In addition to that, Global Ship is 1.04 times more volatile than Austevoll Seafood ASA. It trades about -0.06 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.06 per unit of volatility. If you would invest 809.00 in Austevoll Seafood ASA on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Austevoll Seafood ASA or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Global Ship Lease |
| Austevoll Seafood ASA |
Global Ship and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Austevoll Seafood
The main advantage of trading using opposite Global Ship and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.| Global Ship vs. Clarkson PLC | Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings |
| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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