Correlation Between Ice Fish and XXL ASA
Can any of the company-specific risk be diversified away by investing in both Ice Fish and XXL ASA 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 XXL ASA 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 XXL ASA, you can compare the effects of market volatilities on Ice Fish and XXL ASA 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 XXL ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Fish and XXL ASA.
Diversification Opportunities for Ice Fish and XXL ASA
Very good diversification
The 3 months correlation between Ice and XXL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ice Fish Farm and XXL ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XXL ASA 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 XXL ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XXL ASA has no effect on the direction of Ice Fish i.e., Ice Fish and XXL ASA go up and down completely randomly.
Pair Corralation between Ice Fish and XXL ASA
Assuming the 90 days trading horizon Ice Fish Farm is expected to generate 0.48 times more return on investment than XXL ASA. However, Ice Fish Farm is 2.1 times less risky than XXL ASA. It trades about 0.09 of its potential returns per unit of risk. XXL ASA is currently generating about -0.27 per unit of risk. 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 |
Ice Fish Farm vs. XXL ASA
Performance |
| Timeline |
| Ice Fish Farm |
| XXL ASA |
Ice Fish and XXL ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Fish and XXL ASA
The main advantage of trading using opposite Ice Fish and XXL ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Fish position performs unexpectedly, XXL ASA 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 XXL ASA will offset losses from the drop in XXL ASA's long position.| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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