Correlation Between Nomura Holdings and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings 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 Nomura Holdings and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings and Austevoll Seafood ASA, you can compare the effects of market volatilities on Nomura Holdings 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 Nomura Holdings with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Austevoll Seafood.
Diversification Opportunities for Nomura Holdings and Austevoll Seafood
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nomura and Austevoll is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings 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 Nomura Holdings 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 Nomura Holdings 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 Nomura Holdings i.e., Nomura Holdings and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Nomura Holdings and Austevoll Seafood
Assuming the 90 days horizon Nomura Holdings is expected to generate 3.21 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Nomura Holdings is 1.89 times less risky than Austevoll Seafood. It trades about 0.1 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 820.00 in Austevoll Seafood ASA on September 15, 2024 and sell it today you would earn a total of 64.00 from holding Austevoll Seafood ASA or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomura Holdings vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Nomura Holdings |
| Austevoll Seafood ASA |
Nomura Holdings and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Austevoll Seafood
The main advantage of trading using opposite Nomura Holdings and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings 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.| Nomura Holdings vs. Austevoll Seafood ASA | Nomura Holdings vs. Performance Food Group | Nomura Holdings vs. Tyson Foods | Nomura Holdings vs. BRIT AMER TOBACCO |
| Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. Mowi ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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