Correlation Between AutoStore Holdings and Mowi ASA
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Mowi 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 AutoStore Holdings and Mowi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Mowi ASA, you can compare the effects of market volatilities on AutoStore Holdings and Mowi 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 AutoStore Holdings with a short position of Mowi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Mowi ASA.
Diversification Opportunities for AutoStore Holdings and Mowi ASA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between AutoStore and Mowi is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Mowi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mowi ASA 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 Mowi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mowi ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Mowi ASA go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Mowi ASA
Assuming the 90 days trading horizon AutoStore Holdings is expected to under-perform the Mowi ASA. In addition to that, AutoStore Holdings is 2.69 times more volatile than Mowi ASA. It trades about -0.02 of its total potential returns per unit of risk. Mowi ASA is currently generating about 0.06 per unit of volatility. If you would invest 16,586 in Mowi ASA on November 2, 2024 and sell it today you would earn a total of 6,414 from holding Mowi ASA or generate 38.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Mowi ASA
Performance |
| Timeline |
| AutoStore Holdings |
| Mowi ASA |
AutoStore Holdings and Mowi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Mowi ASA
The main advantage of trading using opposite AutoStore Holdings and Mowi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Mowi 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 Mowi ASA will offset losses from the drop in Mowi ASA'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 |
| Mowi ASA vs. SalMar ASA | Mowi ASA vs. Lery Seafood Group | Mowi ASA vs. Pf Bakkafrost | Mowi ASA vs. Grieg Seafood 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |