Correlation Between Astra Agro and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Astra Agro 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 Astra Agro and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Agro Lestari and Austevoll Seafood ASA, you can compare the effects of market volatilities on Astra Agro 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 Astra Agro with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Agro and Austevoll Seafood.
Diversification Opportunities for Astra Agro and Austevoll Seafood
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and Austevoll is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra Agro Lestari 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 Astra Agro 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 Astra Agro Lestari 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 Astra Agro i.e., Astra Agro and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Astra Agro and Austevoll Seafood
If you would invest 880.00 in Austevoll Seafood ASA on November 4, 2024 and sell it today you would earn a total of 75.00 from holding Austevoll Seafood ASA or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Astra Agro Lestari vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Astra Agro Lestari |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Austevoll Seafood ASA |
Astra Agro and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Agro and Austevoll Seafood
The main advantage of trading using opposite Astra Agro and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Agro 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.| Astra Agro vs. Forafric Global PLC | Astra Agro vs. Forafric Global PLC | Astra Agro vs. Australian Agricultural | Astra Agro vs. Limoneira Co |
| Austevoll Seafood vs. Golden Agri Resources | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Wilmar International | Austevoll Seafood vs. Brasilagro Adr |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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