Correlation Between Pf Bakkafrost and Horisont Energi
Can any of the company-specific risk be diversified away by investing in both Pf Bakkafrost and Horisont Energi 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 Horisont Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pf Bakkafrost and Horisont Energi AS, you can compare the effects of market volatilities on Pf Bakkafrost and Horisont Energi 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 Horisont Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pf Bakkafrost and Horisont Energi.
Diversification Opportunities for Pf Bakkafrost and Horisont Energi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BAKKA and Horisont is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pf Bakkafrost and Horisont Energi AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horisont Energi AS 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 Horisont Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horisont Energi AS has no effect on the direction of Pf Bakkafrost i.e., Pf Bakkafrost and Horisont Energi go up and down completely randomly.
Pair Corralation between Pf Bakkafrost and Horisont Energi
Assuming the 90 days trading horizon Pf Bakkafrost is expected to generate 0.45 times more return on investment than Horisont Energi. However, Pf Bakkafrost is 2.22 times less risky than Horisont Energi. It trades about 0.0 of its potential returns per unit of risk. Horisont Energi AS is currently generating about -0.09 per unit of risk. If you would invest 64,747 in Pf Bakkafrost on November 27, 2024 and sell it today you would lose (8,097) from holding Pf Bakkafrost or give up 12.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pf Bakkafrost vs. Horisont Energi AS
Performance |
| Timeline |
| Pf Bakkafrost |
| Horisont Energi AS |
Pf Bakkafrost and Horisont Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pf Bakkafrost and Horisont Energi
The main advantage of trading using opposite Pf Bakkafrost and Horisont Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pf Bakkafrost position performs unexpectedly, Horisont Energi 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 Horisont Energi will offset losses from the drop in Horisont Energi'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 |
| Horisont Energi vs. Bien Sparebank ASA | Horisont Energi vs. Dolphin Drilling AS | Horisont Energi vs. Techstep ASA | Horisont Energi vs. Arcticzymes Technologies 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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