Correlation Between Mowi ASA and Aker Horizons
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and Aker Horizons 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 Aker Horizons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA and Aker Horizons AS, you can compare the effects of market volatilities on Mowi ASA and Aker Horizons 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 Aker Horizons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and Aker Horizons.
Diversification Opportunities for Mowi ASA and Aker Horizons
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mowi and Aker is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and Aker Horizons AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Horizons AS 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 are associated (or correlated) with Aker Horizons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Horizons AS has no effect on the direction of Mowi ASA i.e., Mowi ASA and Aker Horizons go up and down completely randomly.
Pair Corralation between Mowi ASA and Aker Horizons
Assuming the 90 days trading horizon Mowi ASA is expected to generate 0.23 times more return on investment than Aker Horizons. However, Mowi ASA is 4.39 times less risky than Aker Horizons. It trades about 0.26 of its potential returns per unit of risk. Aker Horizons AS is currently generating about -0.21 per unit of risk. If you would invest 18,759 in Mowi ASA on September 1, 2024 and sell it today you would earn a total of 1,281 from holding Mowi ASA or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mowi ASA vs. Aker Horizons AS
Performance |
| Timeline |
| Mowi ASA |
| Aker Horizons AS |
Mowi ASA and Aker Horizons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and Aker Horizons
The main advantage of trading using opposite Mowi ASA and Aker Horizons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, Aker Horizons 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 Aker Horizons will offset losses from the drop in Aker Horizons' long position.| Mowi ASA vs. SalMar ASA | Mowi ASA vs. Lery Seafood Group | Mowi ASA vs. Pf Bakkafrost | Mowi ASA vs. Grieg Seafood ASA |
| Aker Horizons vs. Aker Carbon Capture | Aker Horizons vs. REC Silicon ASA | Aker Horizons vs. Aker Solutions ASA | Aker Horizons vs. Aker BP 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |