Correlation Between DAX Index and Austevoll Seafood
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By analyzing existing cross correlation between DAX Index and Austevoll Seafood ASA, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Austevoll Seafood.
Diversification Opportunities for DAX Index and Austevoll Seafood
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Austevoll is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Austevoll Seafood go up and down completely randomly.
Pair Corralation between DAX Index and Austevoll Seafood
Assuming the 90 days trading horizon DAX Index is expected to generate 4.29 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, DAX Index is 6.87 times less risky than Austevoll Seafood. It trades about 0.08 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 361.00 in Austevoll Seafood ASA on September 3, 2024 and sell it today you would earn a total of 494.00 from holding Austevoll Seafood ASA or generate 136.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Austevoll Seafood ASA
Performance |
| Timeline |
DAX Index and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Austevoll Seafood ASA
Pair trading matchups for Austevoll Seafood
Pair Trading with DAX Index and Austevoll Seafood
The main advantage of trading using opposite DAX Index and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Austevoll Seafood vs. Infrastrutture Wireless Italiane | Austevoll Seafood vs. Tower One Wireless | Austevoll Seafood vs. 24SEVENOFFICE GROUP AB | Austevoll Seafood vs. MINCO SILVER |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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