Correlation Between H FARM and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both H FARM 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 H FARM and AUSTEVOLL SEAFOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on H FARM 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 H FARM with a short position of AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and AUSTEVOLL SEAFOOD.
Diversification Opportunities for H FARM and AUSTEVOLL SEAFOOD
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5JQ and AUSTEVOLL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD and H FARM 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 H FARM SPA 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 has no effect on the direction of H FARM i.e., H FARM and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between H FARM and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon H FARM SPA is expected to generate 6.36 times more return on investment than AUSTEVOLL SEAFOOD. However, H FARM is 6.36 times more volatile than AUSTEVOLL SEAFOOD. It trades about 0.05 of its potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about -0.07 per unit of risk. If you would invest 12.00 in H FARM SPA on October 17, 2024 and sell it today you would earn a total of 0.00 from holding H FARM SPA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
H FARM SPA vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| H FARM SPA |
| AUSTEVOLL SEAFOOD |
H FARM and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H FARM and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite H FARM and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM 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.| H FARM vs. PTT Global Chemical | H FARM vs. JAPAN AIRLINES | H FARM vs. KINGBOARD CHEMICAL | H FARM vs. TIANDE CHEMICAL |
| AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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