Correlation Between AutoStore Holdings and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Biofish Holding 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 AutoStore Holdings and Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Biofish Holding AS, you can compare the effects of market volatilities on AutoStore Holdings and Biofish Holding 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 AutoStore Holdings with a short position of Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Biofish Holding.
Diversification Opportunities for AutoStore Holdings and Biofish Holding
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoStore and Biofish is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Biofish Holding go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Biofish Holding
Assuming the 90 days trading horizon AutoStore Holdings is expected to under-perform the Biofish Holding. But the stock apears to be less risky and, when comparing its historical volatility, AutoStore Holdings is 1.27 times less risky than Biofish Holding. The stock trades about 0.0 of its potential returns per unit of risk. The Biofish Holding AS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Biofish Holding AS on September 12, 2024 and sell it today you would lose (1.00) from holding Biofish Holding AS or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Biofish Holding AS
Performance |
| Timeline |
| AutoStore Holdings |
| Biofish Holding AS |
AutoStore Holdings and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Biofish Holding
The main advantage of trading using opposite AutoStore Holdings and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| AutoStore Holdings vs. Nordic Semiconductor ASA | AutoStore Holdings vs. Aker BP ASA | AutoStore Holdings vs. SalMar ASA | AutoStore Holdings vs. Scatec Solar OL |
| Biofish Holding vs. Equinor ASA | Biofish Holding vs. DnB ASA | Biofish Holding vs. Aker BP ASA | Biofish Holding vs. Telenor 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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