Correlation Between Atlantic Sapphire and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on Atlantic Sapphire and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Austevoll Seafood.
Diversification Opportunities for Atlantic Sapphire and Austevoll Seafood
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantic and Austevoll is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire As and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Atlantic Sapphire i.e., Atlantic Sapphire and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Atlantic Sapphire and Austevoll Seafood
Assuming the 90 days trading horizon Atlantic Sapphire As is expected to under-perform the Austevoll Seafood. In addition to that, Atlantic Sapphire is 7.11 times more volatile than Austevoll Seafood ASA. It trades about -0.04 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.04 per unit of volatility. If you would invest 8,228 in Austevoll Seafood ASA on November 27, 2024 and sell it today you would earn a total of 2,422 from holding Austevoll Seafood ASA or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Sapphire As vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Atlantic Sapphire |
| Austevoll Seafood ASA |
Atlantic Sapphire and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Sapphire and Austevoll Seafood
The main advantage of trading using opposite Atlantic Sapphire and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Atlantic Sapphire vs. Grieg Seafood ASA | Atlantic Sapphire vs. Mowi ASA | Atlantic Sapphire vs. SalMar ASA | Atlantic Sapphire vs. Pf Bakkafrost |
| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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