Correlation Between Amedeo Air and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Amedeo Air 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 Amedeo Air and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and Austevoll Seafood ASA, you can compare the effects of market volatilities on Amedeo Air 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 Amedeo Air with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Austevoll Seafood.
Diversification Opportunities for Amedeo Air and Austevoll Seafood
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amedeo and Austevoll is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four 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 Amedeo Air 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 Amedeo Air Four 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 Amedeo Air i.e., Amedeo Air and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Amedeo Air and Austevoll Seafood
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.86 times more return on investment than Austevoll Seafood. However, Amedeo Air Four is 1.16 times less risky than Austevoll Seafood. It trades about 0.38 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.31 per unit of risk. If you would invest 5,374 in Amedeo Air Four on October 24, 2024 and sell it today you would earn a total of 416.00 from holding Amedeo Air Four or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Amedeo Air Four |
| Austevoll Seafood ASA |
Amedeo Air and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Austevoll Seafood
The main advantage of trading using opposite Amedeo Air and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air 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.| Amedeo Air vs. EJF Investments | Amedeo Air vs. Impax Environmental Markets | Amedeo Air vs. Caledonia Investments | Amedeo Air vs. Jupiter Green Investment |
| Austevoll Seafood vs. bet at home AG | Austevoll Seafood vs. Synthomer plc | Austevoll Seafood vs. Cairn Homes PLC | Austevoll Seafood vs. Amedeo Air Four |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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