Correlation Between Mowi ASA and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and Atlantic Sapphire 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 Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA and Atlantic Sapphire As, you can compare the effects of market volatilities on Mowi ASA and Atlantic Sapphire 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 Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and Atlantic Sapphire.
Diversification Opportunities for Mowi ASA and Atlantic Sapphire
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mowi and Atlantic is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and Atlantic Sapphire As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire 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 Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire has no effect on the direction of Mowi ASA i.e., Mowi ASA and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between Mowi ASA and Atlantic Sapphire
Assuming the 90 days trading horizon Mowi ASA is expected to generate 0.09 times more return on investment than Atlantic Sapphire. However, Mowi ASA is 11.7 times less risky than Atlantic Sapphire. It trades about 0.06 of its potential returns per unit of risk. Atlantic Sapphire As is currently generating about -0.04 per unit of risk. If you would invest 17,081 in Mowi ASA on August 25, 2024 and sell it today you would earn a total of 3,219 from holding Mowi ASA or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mowi ASA vs. Atlantic Sapphire As
Performance |
| Timeline |
| Mowi ASA |
| Atlantic Sapphire |
Mowi ASA and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and Atlantic Sapphire
The main advantage of trading using opposite Mowi ASA and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.| Mowi ASA vs. Andfjord Salmon AS | Mowi ASA vs. Arctic Fish Holding | Mowi ASA vs. Ice Fish Farm | Mowi ASA vs. Elkem ASA |
| Atlantic Sapphire vs. Grieg Seafood ASA | Atlantic Sapphire vs. Mowi ASA | Atlantic Sapphire vs. SalMar ASA | Atlantic Sapphire vs. Pf Bakkafrost |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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