Correlation Between Austevoll Seafood and SLC Agricola
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and SLC Agricola 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 SLC Agricola 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 SLC Agricola SA, you can compare the effects of market volatilities on Austevoll Seafood and SLC Agricola 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 SLC Agricola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and SLC Agricola.
Diversification Opportunities for Austevoll Seafood and SLC Agricola
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and SLC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and SLC Agricola SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLC Agricola 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 SLC Agricola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLC Agricola SA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and SLC Agricola go up and down completely randomly.
Pair Corralation between Austevoll Seafood and SLC Agricola
Assuming the 90 days horizon Austevoll Seafood is expected to generate 85.55 times less return on investment than SLC Agricola. But when comparing it to its historical volatility, Austevoll Seafood ASA is 12.33 times less risky than SLC Agricola. It trades about 0.01 of its potential returns per unit of risk. SLC Agricola SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 331.00 in SLC Agricola SA on August 24, 2024 and sell it today you would lose (46.00) from holding SLC Agricola SA or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.35% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. SLC Agricola SA
Performance |
| Timeline |
| Austevoll Seafood ASA |
| SLC Agricola SA |
Austevoll Seafood and SLC Agricola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and SLC Agricola
The main advantage of trading using opposite Austevoll Seafood and SLC Agricola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, SLC Agricola 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 SLC Agricola will offset losses from the drop in SLC Agricola's long position.| Austevoll Seafood vs. Avi Ltd ADR | Austevoll Seafood vs. Altavoz Entertainment | Austevoll Seafood vs. The a2 Milk | Austevoll Seafood vs. Aryzta AG PK |
| SLC Agricola vs. Avi Ltd ADR | SLC Agricola vs. Altavoz Entertainment | SLC Agricola vs. The a2 Milk | SLC Agricola vs. Aryzta AG PK |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets |