Correlation Between Arctic Fish and Mowi ASA
Can any of the company-specific risk be diversified away by investing in both Arctic Fish and Mowi ASA 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 Arctic Fish and Mowi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arctic Fish Holding and Mowi ASA, you can compare the effects of market volatilities on Arctic Fish and Mowi ASA 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 Arctic Fish with a short position of Mowi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Fish and Mowi ASA.
Diversification Opportunities for Arctic Fish and Mowi ASA
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arctic and Mowi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Fish Holding and Mowi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mowi ASA and Arctic Fish 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 Arctic Fish Holding are associated (or correlated) with Mowi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mowi ASA has no effect on the direction of Arctic Fish i.e., Arctic Fish and Mowi ASA go up and down completely randomly.
Pair Corralation between Arctic Fish and Mowi ASA
Assuming the 90 days trading horizon Arctic Fish Holding is expected to under-perform the Mowi ASA. In addition to that, Arctic Fish is 3.1 times more volatile than Mowi ASA. It trades about 0.0 of its total potential returns per unit of risk. Mowi ASA is currently generating about 0.06 per unit of volatility. If you would invest 17,081 in Mowi ASA on August 25, 2024 and sell it today you would earn a total of 3,219 from holding Mowi ASA or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Fish Holding vs. Mowi ASA
Performance |
| Timeline |
| Arctic Fish Holding |
| Mowi ASA |
Arctic Fish and Mowi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Fish and Mowi ASA
The main advantage of trading using opposite Arctic Fish and Mowi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Fish position performs unexpectedly, Mowi ASA 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 Mowi ASA will offset losses from the drop in Mowi ASA's long position.| Arctic Fish vs. Andfjord Salmon AS | Arctic Fish vs. Ice Fish Farm | Arctic Fish vs. Elkem ASA | Arctic Fish vs. Vow ASA |
| Mowi ASA vs. Andfjord Salmon AS | Mowi ASA vs. Arctic Fish Holding | Mowi ASA vs. Ice Fish Farm | Mowi ASA vs. Elkem 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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