Correlation Between Austevoll Seafood and Tomra Systems
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Tomra Systems 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 Tomra Systems 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 Tomra Systems ASA, you can compare the effects of market volatilities on Austevoll Seafood and Tomra Systems 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 Tomra Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Tomra Systems.
Diversification Opportunities for Austevoll Seafood and Tomra Systems
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and Tomra is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Tomra Systems ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tomra Systems 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 Tomra Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tomra Systems ASA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Tomra Systems go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Tomra Systems
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.54 times more return on investment than Tomra Systems. However, Austevoll Seafood ASA is 1.84 times less risky than Tomra Systems. It trades about 0.05 of its potential returns per unit of risk. Tomra Systems ASA is currently generating about 0.0 per unit of risk. If you would invest 7,164 in Austevoll Seafood ASA on August 28, 2024 and sell it today you would earn a total of 3,016 from holding Austevoll Seafood ASA or generate 42.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Tomra Systems ASA
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Tomra Systems ASA |
Austevoll Seafood and Tomra Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Tomra Systems
The main advantage of trading using opposite Austevoll Seafood and Tomra Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Tomra Systems 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 Tomra Systems will offset losses from the drop in Tomra Systems' long position.| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
| Tomra Systems vs. Eidesvik Offshore ASA | Tomra Systems vs. Kitron ASA | Tomra Systems vs. Havila Shipping ASA | Tomra Systems vs. Elkem 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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