Correlation Between Austevoll Seafood and Adecoagro
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Adecoagro 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 Austevoll Seafood and Adecoagro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austevoll Seafood ASA and Adecoagro SA, you can compare the effects of market volatilities on Austevoll Seafood and Adecoagro 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 Austevoll Seafood with a short position of Adecoagro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Adecoagro.
Diversification Opportunities for Austevoll Seafood and Adecoagro
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Adecoagro is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Adecoagro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecoagro SA and Austevoll Seafood 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 Austevoll Seafood ASA are associated (or correlated) with Adecoagro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecoagro SA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Adecoagro go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Adecoagro
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.73 times more return on investment than Adecoagro. However, Austevoll Seafood is 1.73 times more volatile than Adecoagro SA. It trades about 0.23 of its potential returns per unit of risk. Adecoagro SA is currently generating about 0.04 per unit of risk. If you would invest 880.00 in Austevoll Seafood ASA on November 2, 2024 and sell it today you would earn a total of 75.00 from holding Austevoll Seafood ASA or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Adecoagro SA
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Adecoagro SA |
Austevoll Seafood and Adecoagro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Adecoagro
The main advantage of trading using opposite Austevoll Seafood and Adecoagro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Adecoagro 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 Adecoagro will offset losses from the drop in Adecoagro's long position.| Austevoll Seafood vs. Golden Agri Resources | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Wilmar International | Austevoll Seafood vs. Brasilagro Adr |
| Adecoagro vs. Limoneira Co | Adecoagro vs. Dole PLC | Adecoagro vs. Alico Inc | Adecoagro vs. Cal Maine Foods |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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