Correlation Between BRIT AMER and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both BRIT AMER 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 BRIT AMER and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRIT AMER TOBACCO and Austevoll Seafood ASA, you can compare the effects of market volatilities on BRIT AMER 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 BRIT AMER with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRIT AMER and Austevoll Seafood.
Diversification Opportunities for BRIT AMER and Austevoll Seafood
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRIT and Austevoll is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BRIT AMER TOBACCO 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 BRIT AMER 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 BRIT AMER TOBACCO 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 BRIT AMER i.e., BRIT AMER and Austevoll Seafood go up and down completely randomly.
Pair Corralation between BRIT AMER and Austevoll Seafood
Assuming the 90 days trading horizon BRIT AMER is expected to generate 5.39 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, BRIT AMER TOBACCO is 4.82 times less risky than Austevoll Seafood. It trades about 0.05 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 377.00 in Austevoll Seafood ASA on November 2, 2024 and sell it today you would earn a total of 545.00 from holding Austevoll Seafood ASA or generate 144.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRIT AMER TOBACCO vs. Austevoll Seafood ASA
Performance |
| Timeline |
| BRIT AMER TOBACCO |
| Austevoll Seafood ASA |
BRIT AMER and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRIT AMER and Austevoll Seafood
The main advantage of trading using opposite BRIT AMER and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRIT AMER 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.| BRIT AMER vs. NAGOYA RAILROAD | BRIT AMER vs. TEXAS ROADHOUSE | BRIT AMER vs. BROADWIND ENRGY | BRIT AMER vs. SIEM OFFSHORE NEW |
| Austevoll Seafood vs. GMO Internet | Austevoll Seafood vs. Spirent Communications plc | Austevoll Seafood vs. Singapore Telecommunications Limited | Austevoll Seafood vs. DXC Technology Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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