Correlation Between Austevoll Seafood and HAV Group
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and HAV Group 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 HAV Group 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 HAV Group ASA, you can compare the effects of market volatilities on Austevoll Seafood and HAV Group 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 HAV Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and HAV Group.
Diversification Opportunities for Austevoll Seafood and HAV Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austevoll and HAV is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and HAV Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAV Group ASA 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 HAV Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAV Group ASA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and HAV Group go up and down completely randomly.
Pair Corralation between Austevoll Seafood and HAV Group
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.33 times more return on investment than HAV Group. However, Austevoll Seafood ASA is 3.0 times less risky than HAV Group. It trades about 0.21 of its potential returns per unit of risk. HAV Group ASA is currently generating about -0.31 per unit of risk. If you would invest 9,540 in Austevoll Seafood ASA on September 1, 2024 and sell it today you would earn a total of 590.00 from holding Austevoll Seafood ASA or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. HAV Group ASA
Performance |
| Timeline |
| Austevoll Seafood ASA |
| HAV Group ASA |
Austevoll Seafood and HAV Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and HAV Group
The main advantage of trading using opposite Austevoll Seafood and HAV Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, HAV Group 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 HAV Group will offset losses from the drop in HAV Group's long position.| Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Mowi ASA |
| HAV Group vs. Havila Shipping ASA | HAV Group vs. Shelf Drilling | HAV Group vs. Solstad Offsho | HAV Group vs. Eidesvik Offshore 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |