Correlation Between Eqva ASA and Ice Fish
Can any of the company-specific risk be diversified away by investing in both Eqva ASA and Ice Fish 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 Eqva ASA and Ice Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eqva ASA and Ice Fish Farm, you can compare the effects of market volatilities on Eqva ASA and Ice Fish 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 Eqva ASA with a short position of Ice Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eqva ASA and Ice Fish.
Diversification Opportunities for Eqva ASA and Ice Fish
Very good diversification
The 3 months correlation between Eqva and Ice is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eqva ASA and Ice Fish Farm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Fish Farm and Eqva ASA 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 Eqva ASA are associated (or correlated) with Ice Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Fish Farm has no effect on the direction of Eqva ASA i.e., Eqva ASA and Ice Fish go up and down completely randomly.
Pair Corralation between Eqva ASA and Ice Fish
Assuming the 90 days trading horizon Eqva ASA is expected to under-perform the Ice Fish. But the stock apears to be less risky and, when comparing its historical volatility, Eqva ASA is 1.41 times less risky than Ice Fish. The stock trades about -0.06 of its potential returns per unit of risk. The Ice Fish Farm is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Ice Fish Farm on August 25, 2024 and sell it today you would earn a total of 420.00 from holding Ice Fish Farm or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eqva ASA vs. Ice Fish Farm
Performance |
| Timeline |
| Eqva ASA |
| Ice Fish Farm |
Eqva ASA and Ice Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eqva ASA and Ice Fish
The main advantage of trading using opposite Eqva ASA and Ice Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eqva ASA position performs unexpectedly, Ice Fish 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 Ice Fish will offset losses from the drop in Ice Fish's long position.The idea behind Eqva ASA and Ice Fish Farm pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ice Fish vs. Andfjord Salmon AS | Ice Fish vs. Arctic Fish Holding | Ice Fish vs. Elkem ASA | Ice Fish vs. Vow 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |