Correlation Between Atlantic Sapphire and Arctic Fish
Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire and Arctic Fish 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 Atlantic Sapphire and Arctic Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Sapphire As and Arctic Fish Holding, you can compare the effects of market volatilities on Atlantic Sapphire and Arctic Fish 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 Atlantic Sapphire with a short position of Arctic Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Arctic Fish.
Diversification Opportunities for Atlantic Sapphire and Arctic Fish
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlantic and Arctic is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire As and Arctic Fish Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Fish Holding and Atlantic Sapphire 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 Atlantic Sapphire As are associated (or correlated) with Arctic Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Fish Holding has no effect on the direction of Atlantic Sapphire i.e., Atlantic Sapphire and Arctic Fish go up and down completely randomly.
Pair Corralation between Atlantic Sapphire and Arctic Fish
Assuming the 90 days trading horizon Atlantic Sapphire As is expected to under-perform the Arctic Fish. In addition to that, Atlantic Sapphire is 2.93 times more volatile than Arctic Fish Holding. It trades about -0.04 of its total potential returns per unit of risk. Arctic Fish Holding is currently generating about -0.01 per unit of volatility. If you would invest 9,900 in Arctic Fish Holding on November 27, 2024 and sell it today you would lose (3,650) from holding Arctic Fish Holding or give up 36.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Sapphire As vs. Arctic Fish Holding
Performance |
| Timeline |
| Atlantic Sapphire |
| Arctic Fish Holding |
Atlantic Sapphire and Arctic Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Sapphire and Arctic Fish
The main advantage of trading using opposite Atlantic Sapphire and Arctic Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire position performs unexpectedly, Arctic Fish 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 Arctic Fish will offset losses from the drop in Arctic Fish's long position.| Atlantic Sapphire vs. Grieg Seafood ASA | Atlantic Sapphire vs. Mowi ASA | Atlantic Sapphire vs. SalMar ASA | Atlantic Sapphire vs. Pf Bakkafrost |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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