Correlation Between Andfjord Salmon and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both Andfjord Salmon and Arcticzymes Technologies 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 Andfjord Salmon and Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andfjord Salmon AS and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Andfjord Salmon and Arcticzymes Technologies 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 Andfjord Salmon with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andfjord Salmon and Arcticzymes Technologies.
Diversification Opportunities for Andfjord Salmon and Arcticzymes Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Andfjord and Arcticzymes is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Andfjord Salmon AS and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies and Andfjord Salmon 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 Andfjord Salmon AS are associated (or correlated) with Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of Andfjord Salmon i.e., Andfjord Salmon and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between Andfjord Salmon and Arcticzymes Technologies
Assuming the 90 days trading horizon Andfjord Salmon AS is expected to generate 0.65 times more return on investment than Arcticzymes Technologies. However, Andfjord Salmon AS is 1.55 times less risky than Arcticzymes Technologies. It trades about 0.26 of its potential returns per unit of risk. Arcticzymes Technologies ASA is currently generating about -0.17 per unit of risk. If you would invest 3,100 in Andfjord Salmon AS on August 25, 2024 and sell it today you would earn a total of 900.00 from holding Andfjord Salmon AS or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andfjord Salmon AS vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| Andfjord Salmon AS |
| Arcticzymes Technologies |
Andfjord Salmon and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andfjord Salmon and Arcticzymes Technologies
The main advantage of trading using opposite Andfjord Salmon and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andfjord Salmon position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| Andfjord Salmon vs. Arctic Fish Holding | Andfjord Salmon vs. Ice Fish Farm | Andfjord Salmon vs. Elkem ASA | Andfjord Salmon vs. Vow ASA |
| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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