Correlation Between Austevoll Seafood and Akva
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Akva 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 Akva 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 Akva Group, you can compare the effects of market volatilities on Austevoll Seafood and Akva 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 Akva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Akva.
Diversification Opportunities for Austevoll Seafood and Akva
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austevoll and Akva is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Akva Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akva Group 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 Akva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akva Group has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Akva go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Akva
Assuming the 90 days trading horizon Austevoll Seafood is expected to generate 1.55 times less return on investment than Akva. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.81 times less risky than Akva. It trades about 0.13 of its potential returns per unit of risk. Akva Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,100 in Akva Group on September 3, 2024 and sell it today you would earn a total of 900.00 from holding Akva Group or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Akva Group
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Akva Group |
Austevoll Seafood and Akva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Akva
The main advantage of trading using opposite Austevoll Seafood and Akva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Akva 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 Akva will offset losses from the drop in Akva's long position.| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. Pf Bakkafrost | Austevoll Seafood vs. Mowi ASA |
| Akva vs. Austevoll Seafood ASA | Akva vs. Grieg Seafood ASA | Akva vs. Lery Seafood Group | Akva vs. SalMar 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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