Correlation Between Cellink AB and Mowi ASA
Can any of the company-specific risk be diversified away by investing in both Cellink AB and Mowi ASA 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 Cellink AB and Mowi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellink AB and Mowi ASA, you can compare the effects of market volatilities on Cellink AB and Mowi ASA 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 Cellink AB with a short position of Mowi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellink AB and Mowi ASA.
Diversification Opportunities for Cellink AB and Mowi ASA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellink and Mowi is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cellink AB and Mowi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mowi ASA and Cellink AB 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 Cellink AB are associated (or correlated) with Mowi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mowi ASA has no effect on the direction of Cellink AB i.e., Cellink AB and Mowi ASA go up and down completely randomly.
Pair Corralation between Cellink AB and Mowi ASA
Assuming the 90 days horizon Cellink AB is expected to under-perform the Mowi ASA. In addition to that, Cellink AB is 2.3 times more volatile than Mowi ASA. It trades about -0.13 of its total potential returns per unit of risk. Mowi ASA is currently generating about 0.22 per unit of volatility. If you would invest 1,491 in Mowi ASA on August 29, 2024 and sell it today you would earn a total of 233.00 from holding Mowi ASA or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellink AB vs. Mowi ASA
Performance |
| Timeline |
| Cellink AB |
| Mowi ASA |
Cellink AB and Mowi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellink AB and Mowi ASA
The main advantage of trading using opposite Cellink AB and Mowi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellink AB position performs unexpectedly, Mowi ASA 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 Mowi ASA will offset losses from the drop in Mowi ASA's long position.| Cellink AB vs. Laureate Education | Cellink AB vs. Xinhua Winshare Publishing | Cellink AB vs. CARSALESCOM | Cellink AB vs. EPSILON HEALTHCARE LTD |
| Mowi ASA vs. Superior Plus Corp | Mowi ASA vs. NMI Holdings | Mowi ASA vs. Origin Agritech | Mowi ASA vs. SIVERS SEMICONDUCTORS AB |
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 CEOs Directory module to screen CEOs from public companies around the world.
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