Correlation Between Aasen Sparebank and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Aasen Sparebank 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 Aasen Sparebank and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aasen Sparebank and Austevoll Seafood ASA, you can compare the effects of market volatilities on Aasen Sparebank 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 Aasen Sparebank with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aasen Sparebank and Austevoll Seafood.
Diversification Opportunities for Aasen Sparebank and Austevoll Seafood
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aasen and Austevoll is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aasen Sparebank 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 Aasen Sparebank 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 Aasen Sparebank 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 Aasen Sparebank i.e., Aasen Sparebank and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Aasen Sparebank and Austevoll Seafood
Assuming the 90 days trading horizon Aasen Sparebank is expected to under-perform the Austevoll Seafood. In addition to that, Aasen Sparebank is 1.25 times more volatile than Austevoll Seafood ASA. It trades about 0.0 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.11 per unit of volatility. If you would invest 7,637 in Austevoll Seafood ASA on September 1, 2024 and sell it today you would earn a total of 2,493 from holding Austevoll Seafood ASA or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aasen Sparebank vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Aasen Sparebank |
| Austevoll Seafood ASA |
Aasen Sparebank and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aasen Sparebank and Austevoll Seafood
The main advantage of trading using opposite Aasen Sparebank and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aasen Sparebank 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.| Aasen Sparebank vs. Grong Sparebank | Aasen Sparebank vs. Melhus Sparebank | Aasen Sparebank vs. Aurskog Sparebank | Aasen Sparebank vs. Sparebanken Ost |
| Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Mowi ASA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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