Correlation Between SalMar ASA and OneApex
Can any of the company-specific risk be diversified away by investing in both SalMar ASA and OneApex 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 SalMar ASA and OneApex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and OneApex Limited, you can compare the effects of market volatilities on SalMar ASA and OneApex 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 SalMar ASA with a short position of OneApex. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and OneApex.
Diversification Opportunities for SalMar ASA and OneApex
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SalMar and OneApex is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and OneApex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneApex Limited and SalMar ASA 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 SalMar ASA are associated (or correlated) with OneApex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneApex Limited has no effect on the direction of SalMar ASA i.e., SalMar ASA and OneApex go up and down completely randomly.
Pair Corralation between SalMar ASA and OneApex
Assuming the 90 days horizon SalMar ASA is expected to generate 25.56 times less return on investment than OneApex. But when comparing it to its historical volatility, SalMar ASA is 5.48 times less risky than OneApex. It trades about 0.01 of its potential returns per unit of risk. OneApex Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8.40 in OneApex Limited on September 2, 2024 and sell it today you would lose (1.20) from holding OneApex Limited or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SalMar ASA vs. OneApex Limited
Performance |
| Timeline |
| SalMar ASA |
| OneApex Limited |
SalMar ASA and OneApex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SalMar ASA and OneApex
The main advantage of trading using opposite SalMar ASA and OneApex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA position performs unexpectedly, OneApex 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 OneApex will offset losses from the drop in OneApex's long position.| SalMar ASA vs. Gaztransport Technigaz SA | SalMar ASA vs. SPORTING | SalMar ASA vs. Apollo Investment Corp | SalMar ASA vs. PennyMac Mortgage Investment |
| OneApex vs. SalMar ASA | OneApex vs. Superior Plus Corp | OneApex vs. NMI Holdings | OneApex vs. Origin Agritech |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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