Correlation Between Arctic Fish and XXL ASA
Can any of the company-specific risk be diversified away by investing in both Arctic Fish and XXL 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 XXL 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 XXL ASA, you can compare the effects of market volatilities on Arctic Fish and XXL 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 XXL ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Fish and XXL ASA.
Diversification Opportunities for Arctic Fish and XXL ASA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arctic and XXL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Fish Holding and XXL ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XXL 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 XXL ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XXL ASA has no effect on the direction of Arctic Fish i.e., Arctic Fish and XXL ASA go up and down completely randomly.
Pair Corralation between Arctic Fish and XXL ASA
Assuming the 90 days trading horizon Arctic Fish Holding is expected to generate 0.43 times more return on investment than XXL ASA. However, Arctic Fish Holding is 2.35 times less risky than XXL ASA. It trades about 0.2 of its potential returns per unit of risk. XXL ASA is currently generating about -0.32 per unit of risk. If you would invest 4,820 in Arctic Fish Holding on August 29, 2024 and sell it today you would earn a total of 2,180 from holding Arctic Fish Holding or generate 45.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Fish Holding vs. XXL ASA
Performance |
| Timeline |
| Arctic Fish Holding |
| XXL ASA |
Arctic Fish and XXL ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Fish and XXL ASA
The main advantage of trading using opposite Arctic Fish and XXL ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Fish position performs unexpectedly, XXL 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 XXL ASA will offset losses from the drop in XXL ASA's long position.| Arctic Fish vs. Icelandic Salmon As | Arctic Fish vs. Ice Fish Farm | Arctic Fish vs. Salmon Evolution Holding | Arctic Fish vs. Atlantic Sapphire 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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