Correlation Between Dupont De and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Austevoll Seafood ASA, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Austevoll Seafood.
Diversification Opportunities for Dupont De and Austevoll Seafood
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Austevoll is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Dupont De and Austevoll Seafood
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.89 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Dupont De Nemours is 1.11 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 0.13 of returns per unit of risk over similar time horizon. If you would invest 7,220 in Austevoll Seafood ASA on November 5, 2024 and sell it today you would earn a total of 3,840 from holding Austevoll Seafood ASA or generate 53.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Dupont De Nemours vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Dupont De Nemours |
| Austevoll Seafood ASA |
Dupont De and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Austevoll Seafood
The main advantage of trading using opposite Dupont De and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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