Correlation Between Austevoll Seafood and SpareBank
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and SpareBank 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 SpareBank 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 SpareBank 1 stlandet, you can compare the effects of market volatilities on Austevoll Seafood and SpareBank 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 SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and SpareBank.
Diversification Opportunities for Austevoll Seafood and SpareBank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and SpareBank is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and SpareBank 1 stlandet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpareBank 1 stlandet 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 SpareBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpareBank 1 stlandet has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and SpareBank go up and down completely randomly.
Pair Corralation between Austevoll Seafood and SpareBank
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 1.12 times more return on investment than SpareBank. However, Austevoll Seafood is 1.12 times more volatile than SpareBank 1 stlandet. It trades about 0.44 of its potential returns per unit of risk. SpareBank 1 stlandet is currently generating about 0.25 per unit of risk. If you would invest 9,805 in Austevoll Seafood ASA on November 3, 2024 and sell it today you would earn a total of 1,255 from holding Austevoll Seafood ASA or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. SpareBank 1 stlandet
Performance |
| Timeline |
| Austevoll Seafood ASA |
| SpareBank 1 stlandet |
Austevoll Seafood and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and SpareBank
The main advantage of trading using opposite Austevoll Seafood and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, SpareBank 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 SpareBank will offset losses from the drop in SpareBank'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 |
| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Sparebanken Vest | SpareBank vs. Pareto Bank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |