Correlation Between Performance Food and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Performance Food 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 Performance Food and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and Austevoll Seafood ASA, you can compare the effects of market volatilities on Performance Food 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 Performance Food with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and Austevoll Seafood.
Diversification Opportunities for Performance Food and Austevoll Seafood
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Performance and Austevoll is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group 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 Performance Food 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 Performance Food Group 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 Performance Food i.e., Performance Food and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Performance Food and Austevoll Seafood
Assuming the 90 days trading horizon Performance Food Group is expected to generate 0.81 times more return on investment than Austevoll Seafood. However, Performance Food Group is 1.24 times less risky than Austevoll Seafood. It trades about 0.3 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.11 per unit of risk. If you would invest 7,550 in Performance Food Group on August 29, 2024 and sell it today you would earn a total of 800.00 from holding Performance Food Group or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Food Group vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Performance Food |
| Austevoll Seafood ASA |
Performance Food and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and Austevoll Seafood
The main advantage of trading using opposite Performance Food and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food 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.| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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