Correlation Between Pf Bakkafrost and Masoval AS
Can any of the company-specific risk be diversified away by investing in both Pf Bakkafrost and Masoval AS 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 Masoval AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pf Bakkafrost and Masoval AS, you can compare the effects of market volatilities on Pf Bakkafrost and Masoval AS 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 Masoval AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pf Bakkafrost and Masoval AS.
Diversification Opportunities for Pf Bakkafrost and Masoval AS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BAKKA and Masoval is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pf Bakkafrost and Masoval AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masoval 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 Masoval AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masoval AS has no effect on the direction of Pf Bakkafrost i.e., Pf Bakkafrost and Masoval AS go up and down completely randomly.
Pair Corralation between Pf Bakkafrost and Masoval AS
Assuming the 90 days trading horizon Pf Bakkafrost is expected to generate 0.68 times more return on investment than Masoval AS. However, Pf Bakkafrost is 1.48 times less risky than Masoval AS. It trades about 0.06 of its potential returns per unit of risk. Masoval AS is currently generating about -0.16 per unit of risk. If you would invest 65,250 in Pf Bakkafrost on September 12, 2024 and sell it today you would earn a total of 1,050 from holding Pf Bakkafrost or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pf Bakkafrost vs. Masoval AS
Performance |
| Timeline |
| Pf Bakkafrost |
| Masoval AS |
Pf Bakkafrost and Masoval AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pf Bakkafrost and Masoval AS
The main advantage of trading using opposite Pf Bakkafrost and Masoval AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pf Bakkafrost position performs unexpectedly, Masoval AS 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 Masoval AS will offset losses from the drop in Masoval AS's long position.| Pf Bakkafrost vs. SalMar ASA | Pf Bakkafrost vs. Grieg Seafood ASA | Pf Bakkafrost vs. Austevoll Seafood ASA | Pf Bakkafrost vs. Mowi ASA |
| Masoval AS vs. SalMar ASA | Masoval AS vs. Lery Seafood Group | Masoval AS vs. Pf Bakkafrost | Masoval AS 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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