Correlation Between Mowi ASA and Bunge
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and Bunge 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 Mowi ASA and Bunge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA ADR and Bunge Limited, you can compare the effects of market volatilities on Mowi ASA and Bunge 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 Mowi ASA with a short position of Bunge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and Bunge.
Diversification Opportunities for Mowi ASA and Bunge
Excellent diversification
The 3 months correlation between Mowi and Bunge is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA ADR and Bunge Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bunge Limited and Mowi 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 Mowi ASA ADR are associated (or correlated) with Bunge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bunge Limited has no effect on the direction of Mowi ASA i.e., Mowi ASA and Bunge go up and down completely randomly.
Pair Corralation between Mowi ASA and Bunge
If you would invest 1,761 in Mowi ASA ADR on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Mowi ASA ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mowi ASA ADR vs. Bunge Limited
Performance |
| Timeline |
| Mowi ASA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bunge Limited |
Mowi ASA and Bunge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and Bunge
The main advantage of trading using opposite Mowi ASA and Bunge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, Bunge 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 Bunge will offset losses from the drop in Bunge's long position.| Mowi ASA vs. Compagnie Generale des | Mowi ASA vs. Adecco Group | Mowi ASA vs. Sandvik AB ADR | Mowi ASA vs. Central Japan Railway |
| Bunge vs. Lancaster Colony | Bunge vs. Treehouse Foods | Bunge vs. John B Sanfilippo | Bunge vs. Seneca Foods Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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