Correlation Between VIVA WINE and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both VIVA WINE 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 VIVA WINE and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIVA WINE GROUP and Austevoll Seafood ASA, you can compare the effects of market volatilities on VIVA WINE 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 VIVA WINE with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIVA WINE and Austevoll Seafood.
Diversification Opportunities for VIVA WINE and Austevoll Seafood
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VIVA and Austevoll is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding VIVA WINE GROUP 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 VIVA WINE 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 VIVA WINE GROUP 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 VIVA WINE i.e., VIVA WINE and Austevoll Seafood go up and down completely randomly.
Pair Corralation between VIVA WINE and Austevoll Seafood
Assuming the 90 days horizon VIVA WINE GROUP is expected to generate 0.86 times more return on investment than Austevoll Seafood. However, VIVA WINE GROUP is 1.16 times less risky than Austevoll Seafood. It trades about 0.2 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about -0.01 per unit of risk. If you would invest 337.00 in VIVA WINE GROUP on December 1, 2024 and sell it today you would earn a total of 24.00 from holding VIVA WINE GROUP or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIVA WINE GROUP vs. Austevoll Seafood ASA
Performance |
| Timeline |
| VIVA WINE GROUP |
| Austevoll Seafood ASA |
VIVA WINE and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIVA WINE and Austevoll Seafood
The main advantage of trading using opposite VIVA WINE and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIVA WINE 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.| VIVA WINE vs. China Modern Dairy | VIVA WINE vs. SENECA FOODS A | VIVA WINE vs. PATTIES FOODS | VIVA WINE vs. Sunny Optical Technology |
| Austevoll Seafood vs. Platinum Investment Management | Austevoll Seafood vs. Mobilezone Holding AG | Austevoll Seafood vs. Cleanaway Waste Management | Austevoll Seafood vs. FIH MOBILE |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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