Correlation Between FUYO GENERAL and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Austevoll Seafood ASA, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Austevoll Seafood.
Diversification Opportunities for FUYO GENERAL and Austevoll Seafood
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUYO and Austevoll is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Austevoll Seafood go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Austevoll Seafood
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Austevoll Seafood. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 1.08 times less risky than Austevoll Seafood. The stock trades about -0.02 of its potential returns per unit of risk. The Austevoll Seafood ASA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 745.00 in Austevoll Seafood ASA on August 28, 2024 and sell it today you would earn a total of 110.00 from holding Austevoll Seafood ASA or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Austevoll Seafood ASA
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Austevoll Seafood ASA |
FUYO GENERAL and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Austevoll Seafood
The main advantage of trading using opposite FUYO GENERAL and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL vs. Origin Agritech | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB |
| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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