Correlation Between Hang Seng and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Hang Seng 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 Hang Seng and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hang Seng Bank and Austevoll Seafood ASA, you can compare the effects of market volatilities on Hang Seng 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 Hang Seng with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Austevoll Seafood.
Diversification Opportunities for Hang Seng and Austevoll Seafood
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hang and Austevoll is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng Bank 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 Hang Seng 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 Hang Seng Bank 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 Hang Seng i.e., Hang Seng and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Hang Seng and Austevoll Seafood
Assuming the 90 days horizon Hang Seng Bank is expected to generate 1.27 times more return on investment than Austevoll Seafood. However, Hang Seng is 1.27 times more volatile than Austevoll Seafood ASA. It trades about 0.11 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.11 per unit of risk. If you would invest 985.00 in Hang Seng Bank on September 4, 2024 and sell it today you would earn a total of 135.00 from holding Hang Seng Bank or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Hang Seng Bank vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Hang Seng Bank |
| Austevoll Seafood ASA |
Hang Seng and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Seng and Austevoll Seafood
The main advantage of trading using opposite Hang Seng and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Seng 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.| Hang Seng vs. Austevoll Seafood ASA | Hang Seng vs. Federal Agricultural Mortgage | Hang Seng vs. Cal Maine Foods | Hang Seng vs. Titan Machinery |
| Austevoll Seafood vs. GRUPO CARSO A1 | Austevoll Seafood vs. Cars Inc | Austevoll Seafood vs. Zurich Insurance Group | Austevoll Seafood vs. COMMERCIAL VEHICLE |
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
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |