Correlation Between Kitron ASA and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Kitron ASA 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 Kitron ASA and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kitron ASA and Austevoll Seafood ASA, you can compare the effects of market volatilities on Kitron ASA 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 Kitron ASA with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kitron ASA and Austevoll Seafood.
Diversification Opportunities for Kitron ASA and Austevoll Seafood
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kitron and Austevoll is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kitron ASA 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 Kitron 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 Kitron ASA 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 Kitron ASA i.e., Kitron ASA and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Kitron ASA and Austevoll Seafood
Assuming the 90 days trading horizon Kitron ASA is expected to generate 9.21 times less return on investment than Austevoll Seafood. In addition to that, Kitron ASA is 1.1 times more volatile than Austevoll Seafood ASA. It trades about 0.01 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.13 per unit of volatility. If you would invest 9,745 in Austevoll Seafood ASA on August 31, 2024 and sell it today you would earn a total of 385.00 from holding Austevoll Seafood ASA or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kitron ASA vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Kitron ASA |
| Austevoll Seafood ASA |
Kitron ASA and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kitron ASA and Austevoll Seafood
The main advantage of trading using opposite Kitron ASA and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kitron ASA 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.| Kitron ASA vs. Europris ASA | Kitron ASA vs. Kongsberg Gruppen ASA | Kitron ASA vs. Nordic Semiconductor ASA | Kitron ASA vs. Storebrand ASA |
| Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost | Austevoll Seafood vs. Mowi 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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