Correlation Between Austevoll Seafood and Deep Value
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Deep Value 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 Deep Value 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 Deep Value Driller, you can compare the effects of market volatilities on Austevoll Seafood and Deep Value 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 Deep Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Deep Value.
Diversification Opportunities for Austevoll Seafood and Deep Value
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Deep is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Deep Value Driller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deep Value Driller 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 Deep Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deep Value Driller has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Deep Value go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Deep Value
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.79 times more return on investment than Deep Value. However, Austevoll Seafood ASA is 1.27 times less risky than Deep Value. It trades about 0.04 of its potential returns per unit of risk. Deep Value Driller is currently generating about -0.43 per unit of risk. If you would invest 9,900 in Austevoll Seafood ASA on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Austevoll Seafood ASA or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Deep Value Driller
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Deep Value Driller |
Austevoll Seafood and Deep Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Deep Value
The main advantage of trading using opposite Austevoll Seafood and Deep Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Deep Value 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 Deep Value will offset losses from the drop in Deep Value's long position.| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
| Deep Value vs. Austevoll Seafood ASA | Deep Value vs. NorAm Drilling AS | Deep Value vs. Odfjell Technology | Deep Value vs. Norwegian Air Shuttle |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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