Correlation Between Atlantic Sapphire and Andfjord Salmon
Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire and Andfjord Salmon 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 Andfjord Salmon 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 Andfjord Salmon AS, you can compare the effects of market volatilities on Atlantic Sapphire and Andfjord Salmon 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 Andfjord Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Andfjord Salmon.
Diversification Opportunities for Atlantic Sapphire and Andfjord Salmon
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantic and Andfjord is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire As and Andfjord Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andfjord Salmon AS 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 Andfjord Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andfjord Salmon AS has no effect on the direction of Atlantic Sapphire i.e., Atlantic Sapphire and Andfjord Salmon go up and down completely randomly.
Pair Corralation between Atlantic Sapphire and Andfjord Salmon
Assuming the 90 days trading horizon Atlantic Sapphire is expected to generate 151.67 times less return on investment than Andfjord Salmon. But when comparing it to its historical volatility, Atlantic Sapphire As is 1.25 times less risky than Andfjord Salmon. It trades about 0.0 of its potential returns per unit of risk. Andfjord Salmon AS is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,330 in Andfjord Salmon AS on September 1, 2024 and sell it today you would earn a total of 740.00 from holding Andfjord Salmon AS or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atlantic Sapphire As vs. Andfjord Salmon AS
Performance |
| Timeline |
| Atlantic Sapphire |
| Andfjord Salmon AS |
Atlantic Sapphire and Andfjord Salmon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Sapphire and Andfjord Salmon
The main advantage of trading using opposite Atlantic Sapphire and Andfjord Salmon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire position performs unexpectedly, Andfjord Salmon 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 Andfjord Salmon will offset losses from the drop in Andfjord Salmon's long position.| Atlantic Sapphire vs. Andfjord Salmon AS | Atlantic Sapphire vs. Arctic Fish Holding | Atlantic Sapphire vs. Elkem ASA | Atlantic Sapphire vs. Integrated Wind Solutions |
| Andfjord Salmon vs. Salmon Evolution Holding | Andfjord Salmon vs. Atlantic Sapphire As | Andfjord Salmon vs. Nordic Aqua Partners | Andfjord Salmon vs. Grieg Seafood 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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