Correlation Between Mowi ASA and Morrow Bank
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and Morrow Bank 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 Morrow Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA and Morrow Bank ASA, you can compare the effects of market volatilities on Mowi ASA and Morrow Bank 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 Morrow Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and Morrow Bank.
Diversification Opportunities for Mowi ASA and Morrow Bank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mowi and Morrow is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and Morrow Bank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morrow Bank ASA 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 Morrow Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morrow Bank ASA has no effect on the direction of Mowi ASA i.e., Mowi ASA and Morrow Bank go up and down completely randomly.
Pair Corralation between Mowi ASA and Morrow Bank
Assuming the 90 days trading horizon Mowi ASA is expected to generate 1.55 times less return on investment than Morrow Bank. But when comparing it to its historical volatility, Mowi ASA is 1.62 times less risky than Morrow Bank. It trades about 0.06 of its potential returns per unit of risk. Morrow Bank ASA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Morrow Bank ASA on August 29, 2024 and sell it today you would earn a total of 335.00 from holding Morrow Bank ASA or generate 63.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mowi ASA vs. Morrow Bank ASA
Performance |
| Timeline |
| Mowi ASA |
| Morrow Bank ASA |
Mowi ASA and Morrow Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and Morrow Bank
The main advantage of trading using opposite Mowi ASA and Morrow Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, Morrow Bank 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 Morrow Bank will offset losses from the drop in Morrow Bank's long position.| Mowi ASA vs. SalMar ASA | Mowi ASA vs. Lery Seafood Group | Mowi ASA vs. Pf Bakkafrost | Mowi ASA vs. Grieg Seafood ASA |
| Morrow Bank vs. Nidaros Sparebank | Morrow Bank vs. SpareBank 1 stlandet | Morrow Bank vs. Bien Sparebank ASA | Morrow Bank vs. Aurskog Sparebank |
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.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |