Correlation Between Artisan Consumer and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both Artisan Consumer and SalMar 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 Artisan Consumer and SalMar ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Consumer Goods and SalMar ASA, you can compare the effects of market volatilities on Artisan Consumer and SalMar 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 Artisan Consumer with a short position of SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Consumer and SalMar ASA.
Diversification Opportunities for Artisan Consumer and SalMar ASA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and SalMar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Consumer Goods and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA and Artisan Consumer 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 Artisan Consumer Goods are associated (or correlated) with SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of Artisan Consumer i.e., Artisan Consumer and SalMar ASA go up and down completely randomly.
Pair Corralation between Artisan Consumer and SalMar ASA
Given the investment horizon of 90 days Artisan Consumer Goods is expected to generate 1.51 times more return on investment than SalMar ASA. However, Artisan Consumer is 1.51 times more volatile than SalMar ASA. It trades about 0.08 of its potential returns per unit of risk. SalMar ASA is currently generating about 0.07 per unit of risk. If you would invest 14.00 in Artisan Consumer Goods on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Artisan Consumer Goods or generate 78.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.52% |
| Values | Daily Returns |
Artisan Consumer Goods vs. SalMar ASA
Performance |
| Timeline |
| Artisan Consumer Goods |
| SalMar ASA |
Artisan Consumer and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Consumer and SalMar ASA
The main advantage of trading using opposite Artisan Consumer and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Consumer position performs unexpectedly, SalMar 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.| Artisan Consumer vs. Advantage Solutions | Artisan Consumer vs. Atlas Corp | Artisan Consumer vs. PureCycle Technologies | Artisan Consumer vs. WM Technology |
| SalMar ASA vs. Austevoll Seafood ASA | SalMar ASA vs. Golden Agri Resources | SalMar ASA vs. SalMar ASA | SalMar ASA vs. Wilmar International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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