Correlation Between Andfjord Salmon and Cloudberry Clean
Can any of the company-specific risk be diversified away by investing in both Andfjord Salmon and Cloudberry Clean 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 Cloudberry Clean 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 Cloudberry Clean Energy, you can compare the effects of market volatilities on Andfjord Salmon and Cloudberry Clean 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 Cloudberry Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andfjord Salmon and Cloudberry Clean.
Diversification Opportunities for Andfjord Salmon and Cloudberry Clean
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Andfjord and Cloudberry is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Andfjord Salmon AS and Cloudberry Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudberry Clean Energy 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 Cloudberry Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudberry Clean Energy has no effect on the direction of Andfjord Salmon i.e., Andfjord Salmon and Cloudberry Clean go up and down completely randomly.
Pair Corralation between Andfjord Salmon and Cloudberry Clean
Assuming the 90 days trading horizon Andfjord Salmon AS is expected to generate 1.56 times more return on investment than Cloudberry Clean. However, Andfjord Salmon is 1.56 times more volatile than Cloudberry Clean Energy. It trades about 0.33 of its potential returns per unit of risk. Cloudberry Clean Energy is currently generating about -0.23 per unit of risk. If you would invest 3,260 in Andfjord Salmon AS on August 29, 2024 and sell it today you would earn a total of 720.00 from holding Andfjord Salmon AS or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andfjord Salmon AS vs. Cloudberry Clean Energy
Performance |
| Timeline |
| Andfjord Salmon AS |
| Cloudberry Clean Energy |
Andfjord Salmon and Cloudberry Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andfjord Salmon and Cloudberry Clean
The main advantage of trading using opposite Andfjord Salmon and Cloudberry Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andfjord Salmon position performs unexpectedly, Cloudberry Clean 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 Cloudberry Clean will offset losses from the drop in Cloudberry Clean's long position.| Andfjord Salmon vs. Elkem ASA | Andfjord Salmon vs. Vow ASA | Andfjord Salmon vs. North Energy ASA | Andfjord Salmon vs. Arcticzymes Technologies ASA |
| Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Elkem ASA | Cloudberry Clean vs. Vow ASA | Cloudberry Clean vs. North Energy 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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