Correlation Between Proximar Seafood and Odfjell B
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Odfjell B 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 Proximar Seafood and Odfjell B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proximar Seafood AS and Odfjell B, you can compare the effects of market volatilities on Proximar Seafood and Odfjell B 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 Proximar Seafood with a short position of Odfjell B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Odfjell B.
Diversification Opportunities for Proximar Seafood and Odfjell B
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Proximar and Odfjell is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Odfjell B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odfjell B and Proximar Seafood 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 Proximar Seafood AS are associated (or correlated) with Odfjell B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odfjell B has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Odfjell B go up and down completely randomly.
Pair Corralation between Proximar Seafood and Odfjell B
Assuming the 90 days trading horizon Proximar Seafood AS is expected to generate 1.39 times more return on investment than Odfjell B. However, Proximar Seafood is 1.39 times more volatile than Odfjell B. It trades about 0.03 of its potential returns per unit of risk. Odfjell B is currently generating about 0.03 per unit of risk. If you would invest 315.00 in Proximar Seafood AS on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Proximar Seafood AS or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Odfjell B
Performance |
| Timeline |
| Proximar Seafood |
| Odfjell B |
Proximar Seafood and Odfjell B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Odfjell B
The main advantage of trading using opposite Proximar Seafood and Odfjell B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Odfjell B 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 Odfjell B will offset losses from the drop in Odfjell B's long position.| Proximar Seafood vs. Kraft Bank Asa | Proximar Seafood vs. Aasen Sparebank | Proximar Seafood vs. Waste Plastic Upcycling | Proximar Seafood vs. Morrow Bank ASA |
| Odfjell B vs. Dolphin Drilling AS | Odfjell B vs. Xplora Technologies As | Odfjell B vs. Napatech AS | Odfjell B vs. Lea Bank ASA |
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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