Correlation Between Awilco Drilling and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Awilco Drilling and Austevoll Seafood 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 Awilco Drilling and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awilco Drilling PLC and Austevoll Seafood ASA, you can compare the effects of market volatilities on Awilco Drilling and Austevoll Seafood 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 Awilco Drilling with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awilco Drilling and Austevoll Seafood.
Diversification Opportunities for Awilco Drilling and Austevoll Seafood
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Awilco and Austevoll is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Awilco Drilling PLC and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and Awilco Drilling 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 Awilco Drilling PLC are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Awilco Drilling i.e., Awilco Drilling and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Awilco Drilling and Austevoll Seafood
Assuming the 90 days trading horizon Awilco Drilling PLC is expected to generate 11.39 times more return on investment than Austevoll Seafood. However, Awilco Drilling is 11.39 times more volatile than Austevoll Seafood ASA. It trades about 0.07 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.08 per unit of risk. If you would invest 565.00 in Awilco Drilling PLC on September 4, 2024 and sell it today you would earn a total of 1,725 from holding Awilco Drilling PLC or generate 305.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awilco Drilling PLC vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Awilco Drilling PLC |
| Austevoll Seafood ASA |
Awilco Drilling and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awilco Drilling and Austevoll Seafood
The main advantage of trading using opposite Awilco Drilling and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awilco Drilling position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Awilco Drilling vs. BW Energy | Awilco Drilling vs. Subsea 7 SA | Awilco Drilling vs. BW LPG | Awilco Drilling vs. Dno ASA |
| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |