Correlation Between Ice Fish and Arctic Bioscience
Can any of the company-specific risk be diversified away by investing in both Ice Fish and Arctic Bioscience 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 Ice Fish and Arctic Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ice Fish Farm and Arctic Bioscience AS, you can compare the effects of market volatilities on Ice Fish and Arctic Bioscience 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 Ice Fish with a short position of Arctic Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Fish and Arctic Bioscience.
Diversification Opportunities for Ice Fish and Arctic Bioscience
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ice and Arctic is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ice Fish Farm and Arctic Bioscience AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Bioscience and Ice Fish 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 Ice Fish Farm are associated (or correlated) with Arctic Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Bioscience has no effect on the direction of Ice Fish i.e., Ice Fish and Arctic Bioscience go up and down completely randomly.
Pair Corralation between Ice Fish and Arctic Bioscience
Assuming the 90 days trading horizon Ice Fish Farm is expected to generate 0.55 times more return on investment than Arctic Bioscience. However, Ice Fish Farm is 1.81 times less risky than Arctic Bioscience. It trades about 0.05 of its potential returns per unit of risk. Arctic Bioscience AS is currently generating about -0.02 per unit of risk. If you would invest 2,400 in Ice Fish Farm on September 4, 2024 and sell it today you would earn a total of 700.00 from holding Ice Fish Farm or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ice Fish Farm vs. Arctic Bioscience AS
Performance |
| Timeline |
| Ice Fish Farm |
| Arctic Bioscience |
Ice Fish and Arctic Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Fish and Arctic Bioscience
The main advantage of trading using opposite Ice Fish and Arctic Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Fish position performs unexpectedly, Arctic Bioscience 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 Arctic Bioscience will offset losses from the drop in Arctic Bioscience's long position.| Ice Fish vs. SalMar ASA | Ice Fish vs. Austevoll Seafood ASA | Ice Fish vs. Icelandic Salmon As | Ice Fish vs. Masoval AS |
| Arctic Bioscience vs. Airthings ASA | Arctic Bioscience vs. Aega ASA | Arctic Bioscience vs. Huddly AS | Arctic Bioscience vs. Bergenbio 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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