Correlation Between Mowi ASA and KWS SAAT
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and KWS SAAT 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 KWS SAAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA and KWS SAAT SE, you can compare the effects of market volatilities on Mowi ASA and KWS SAAT 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 KWS SAAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and KWS SAAT.
Diversification Opportunities for Mowi ASA and KWS SAAT
Pay attention - limited upside
The 3 months correlation between Mowi and KWS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and KWS SAAT SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWS SAAT SE 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 KWS SAAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWS SAAT SE has no effect on the direction of Mowi ASA i.e., Mowi ASA and KWS SAAT go up and down completely randomly.
Pair Corralation between Mowi ASA and KWS SAAT
Assuming the 90 days horizon Mowi ASA is expected to generate 1.49 times more return on investment than KWS SAAT. However, Mowi ASA is 1.49 times more volatile than KWS SAAT SE. It trades about 0.11 of its potential returns per unit of risk. KWS SAAT SE is currently generating about 0.0 per unit of risk. If you would invest 583.00 in Mowi ASA on August 28, 2024 and sell it today you would earn a total of 1,165 from holding Mowi ASA or generate 199.83% 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. KWS SAAT SE
Performance |
| Timeline |
| Mowi ASA |
| KWS SAAT SE |
Mowi ASA and KWS SAAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mowi ASA and KWS SAAT
The main advantage of trading using opposite Mowi ASA and KWS SAAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, KWS SAAT 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 KWS SAAT will offset losses from the drop in KWS SAAT's long position.| Mowi ASA vs. Superior Plus Corp | Mowi ASA vs. NMI Holdings | Mowi ASA vs. Origin Agritech | Mowi ASA vs. SIVERS SEMICONDUCTORS AB |
| KWS SAAT vs. MTI WIRELESS EDGE | KWS SAAT vs. Japan Tobacco | KWS SAAT vs. CENTURIA OFFICE REIT | KWS SAAT vs. COVIVIO HOTELS INH |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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