Correlation Between Pf Bakkafrost and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both Pf Bakkafrost and Atlantic Sapphire 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 Pf Bakkafrost and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pf Bakkafrost and Atlantic Sapphire As, you can compare the effects of market volatilities on Pf Bakkafrost and Atlantic Sapphire 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 Pf Bakkafrost with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pf Bakkafrost and Atlantic Sapphire.
Diversification Opportunities for Pf Bakkafrost and Atlantic Sapphire
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BAKKA and Atlantic is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pf Bakkafrost and Atlantic Sapphire As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire and Pf Bakkafrost 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 Pf Bakkafrost are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire has no effect on the direction of Pf Bakkafrost i.e., Pf Bakkafrost and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between Pf Bakkafrost and Atlantic Sapphire
Assuming the 90 days trading horizon Pf Bakkafrost is expected to generate 0.15 times more return on investment than Atlantic Sapphire. However, Pf Bakkafrost is 6.6 times less risky than Atlantic Sapphire. It trades about 0.0 of its potential returns per unit of risk. Atlantic Sapphire As is currently generating about -0.05 per unit of risk. If you would invest 69,009 in Pf Bakkafrost on August 29, 2024 and sell it today you would lose (4,809) from holding Pf Bakkafrost or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pf Bakkafrost vs. Atlantic Sapphire As
Performance |
| Timeline |
| Pf Bakkafrost |
| Atlantic Sapphire |
Pf Bakkafrost and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pf Bakkafrost and Atlantic Sapphire
The main advantage of trading using opposite Pf Bakkafrost and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pf Bakkafrost position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.| Pf Bakkafrost vs. SalMar ASA | Pf Bakkafrost vs. Mowi ASA | Pf Bakkafrost vs. Lery Seafood Group | Pf Bakkafrost vs. Grieg Seafood ASA |
| Atlantic Sapphire vs. Andfjord Salmon AS | Atlantic Sapphire vs. Elkem ASA | Atlantic Sapphire vs. Vow ASA | Atlantic Sapphire vs. North Energy 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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