Correlation Between Austevoll Seafood and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Schibsted ASA 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 Schibsted ASA 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 Schibsted ASA B, you can compare the effects of market volatilities on Austevoll Seafood and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Schibsted ASA.
Diversification Opportunities for Austevoll Seafood and Schibsted ASA
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Schibsted is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Schibsted ASA go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Schibsted ASA
Assuming the 90 days trading horizon Austevoll Seafood is expected to generate 2.61 times less return on investment than Schibsted ASA. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.29 times less risky than Schibsted ASA. It trades about 0.04 of its potential returns per unit of risk. Schibsted ASA B is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,219 in Schibsted ASA B on October 24, 2024 and sell it today you would earn a total of 15,661 from holding Schibsted ASA B or generate 96.56% 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. Schibsted ASA B
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Schibsted ASA B |
Austevoll Seafood and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Schibsted ASA
The main advantage of trading using opposite Austevoll Seafood and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA'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 |
| Schibsted ASA vs. Dolphin Drilling AS | Schibsted ASA vs. Austevoll Seafood ASA | Schibsted ASA vs. Sogn Sparebank | Schibsted ASA vs. Odfjell Drilling |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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