Correlation Between Austevoll Seafood and Horisont Energi
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Horisont Energi 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 Horisont Energi 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 Horisont Energi AS, you can compare the effects of market volatilities on Austevoll Seafood and Horisont Energi 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 Horisont Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Horisont Energi.
Diversification Opportunities for Austevoll Seafood and Horisont Energi
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austevoll and Horisont is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Horisont Energi AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horisont Energi AS 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 Horisont Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horisont Energi AS has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Horisont Energi go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Horisont Energi
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.29 times more return on investment than Horisont Energi. However, Austevoll Seafood ASA is 3.45 times less risky than Horisont Energi. It trades about 0.12 of its potential returns per unit of risk. Horisont Energi AS is currently generating about -0.04 per unit of risk. If you would invest 8,460 in Austevoll Seafood ASA on September 3, 2024 and sell it today you would earn a total of 1,670 from holding Austevoll Seafood ASA or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Horisont Energi AS
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Horisont Energi AS |
Austevoll Seafood and Horisont Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Horisont Energi
The main advantage of trading using opposite Austevoll Seafood and Horisont Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Horisont Energi 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 Horisont Energi will offset losses from the drop in Horisont Energi's long position.| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. Mowi ASA |
| Horisont Energi vs. Melhus Sparebank | Horisont Energi vs. Austevoll Seafood ASA | Horisont Energi vs. Sea1 Offshore | Horisont Energi vs. Sunndal Sparebank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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