Correlation Between Ming Le and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Ming Le 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 Ming Le and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Le Sports and Austevoll Seafood ASA, you can compare the effects of market volatilities on Ming Le 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 Ming Le with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and Austevoll Seafood.
Diversification Opportunities for Ming Le and Austevoll Seafood
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and Austevoll is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports 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 Ming Le 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 Ming Le Sports 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 Ming Le i.e., Ming Le and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Ming Le and Austevoll Seafood
Assuming the 90 days trading horizon Ming Le is expected to generate 60.2 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Ming Le Sports is 2.61 times less risky than Austevoll Seafood. It trades about 0.0 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Austevoll Seafood ASA on September 13, 2024 and sell it today you would earn a total of 495.00 from holding Austevoll Seafood ASA or generate 136.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Le Sports vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Ming Le Sports |
| Austevoll Seafood ASA |
Ming Le and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Le and Austevoll Seafood
The main advantage of trading using opposite Ming Le and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le 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.The idea behind Ming Le Sports and Austevoll Seafood ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Austevoll Seafood vs. Lion One Metals | Austevoll Seafood vs. OFFICE DEPOT | Austevoll Seafood vs. KENEDIX OFFICE INV | Austevoll Seafood vs. Caseys General Stores |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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