Correlation Between Masoval AS and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both Masoval AS and SalMar 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 Masoval AS and SalMar ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masoval AS and SalMar ASA, you can compare the effects of market volatilities on Masoval AS and SalMar 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 Masoval AS with a short position of SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masoval AS and SalMar ASA.
Diversification Opportunities for Masoval AS and SalMar ASA
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Masoval and SalMar is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Masoval AS and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA and Masoval AS 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 Masoval AS are associated (or correlated) with SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of Masoval AS i.e., Masoval AS and SalMar ASA go up and down completely randomly.
Pair Corralation between Masoval AS and SalMar ASA
Assuming the 90 days trading horizon Masoval AS is expected to under-perform the SalMar ASA. In addition to that, Masoval AS is 1.13 times more volatile than SalMar ASA. It trades about 0.0 of its total potential returns per unit of risk. SalMar ASA is currently generating about 0.05 per unit of volatility. If you would invest 45,197 in SalMar ASA on September 12, 2024 and sell it today you would earn a total of 12,303 from holding SalMar ASA or generate 27.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masoval AS vs. SalMar ASA
Performance |
| Timeline |
| Masoval AS |
| SalMar ASA |
Masoval AS and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masoval AS and SalMar ASA
The main advantage of trading using opposite Masoval AS and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masoval AS position performs unexpectedly, SalMar 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.| Masoval AS vs. SalMar ASA | Masoval AS vs. Lery Seafood Group | Masoval AS vs. Pf Bakkafrost | Masoval AS vs. Grieg Seafood ASA |
| SalMar ASA vs. Mowi ASA | SalMar ASA vs. Lery Seafood Group | SalMar ASA vs. Pf Bakkafrost | SalMar ASA vs. Grieg Seafood 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |