Correlation Between ADS Maritime and Arctic Fish
Can any of the company-specific risk be diversified away by investing in both ADS Maritime and Arctic Fish 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 ADS Maritime and Arctic Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADS Maritime Holding and Arctic Fish Holding, you can compare the effects of market volatilities on ADS Maritime and Arctic Fish 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 ADS Maritime with a short position of Arctic Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADS Maritime and Arctic Fish.
Diversification Opportunities for ADS Maritime and Arctic Fish
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ADS and Arctic is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ADS Maritime Holding and Arctic Fish Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Fish Holding and ADS Maritime 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 ADS Maritime Holding are associated (or correlated) with Arctic Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Fish Holding has no effect on the direction of ADS Maritime i.e., ADS Maritime and Arctic Fish go up and down completely randomly.
Pair Corralation between ADS Maritime and Arctic Fish
Assuming the 90 days trading horizon ADS Maritime Holding is expected to under-perform the Arctic Fish. But the stock apears to be less risky and, when comparing its historical volatility, ADS Maritime Holding is 1.6 times less risky than Arctic Fish. The stock trades about -0.01 of its potential returns per unit of risk. The Arctic Fish Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,750 in Arctic Fish Holding on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Arctic Fish Holding or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADS Maritime Holding vs. Arctic Fish Holding
Performance |
| Timeline |
| ADS Maritime Holding |
| Arctic Fish Holding |
ADS Maritime and Arctic Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADS Maritime and Arctic Fish
The main advantage of trading using opposite ADS Maritime and Arctic Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADS Maritime position performs unexpectedly, Arctic Fish 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 Arctic Fish will offset losses from the drop in Arctic Fish's long position.| ADS Maritime vs. Havila Shipping ASA | ADS Maritime vs. Shelf Drilling | ADS Maritime vs. Solstad Offsho | ADS Maritime vs. Eidesvik Offshore ASA |
| Arctic Fish vs. SalMar ASA | Arctic Fish vs. Austevoll Seafood ASA | Arctic Fish vs. Icelandic Salmon As | Arctic Fish vs. Masoval AS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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