Correlation Between Bien Sparebank and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Bien Sparebank 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 Bien Sparebank and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bien Sparebank ASA and Austevoll Seafood ASA, you can compare the effects of market volatilities on Bien Sparebank 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 Bien Sparebank with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bien Sparebank and Austevoll Seafood.
Diversification Opportunities for Bien Sparebank and Austevoll Seafood
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bien and Austevoll is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bien Sparebank ASA 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 Bien Sparebank 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 Bien Sparebank ASA 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 Bien Sparebank i.e., Bien Sparebank and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Bien Sparebank and Austevoll Seafood
Assuming the 90 days trading horizon Bien Sparebank ASA is expected to generate 1.53 times more return on investment than Austevoll Seafood. However, Bien Sparebank is 1.53 times more volatile than Austevoll Seafood ASA. It trades about 0.3 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.07 per unit of risk. If you would invest 9,300 in Bien Sparebank ASA on August 29, 2024 and sell it today you would earn a total of 2,700 from holding Bien Sparebank ASA or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bien Sparebank ASA vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Bien Sparebank ASA |
| Austevoll Seafood ASA |
Bien Sparebank and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bien Sparebank and Austevoll Seafood
The main advantage of trading using opposite Bien Sparebank and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bien Sparebank 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.| Bien Sparebank vs. Lea Bank ASA | Bien Sparebank vs. Odfjell Technology | Bien Sparebank vs. Nordic Semiconductor ASA | Bien Sparebank vs. NorAm Drilling AS |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |