Correlation Between Roebuck Food and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Roebuck 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 Roebuck 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 Roebuck Food Group and Austevoll Seafood ASA, you can compare the effects of market volatilities on Roebuck 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 Roebuck Food with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Austevoll Seafood.
Diversification Opportunities for Roebuck Food and Austevoll Seafood
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Roebuck and Austevoll is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck 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 Roebuck 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 Roebuck 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 Roebuck Food i.e., Roebuck Food and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Roebuck Food and Austevoll Seafood
If you would invest 9,486 in Austevoll Seafood ASA on September 4, 2024 and sell it today you would earn a total of 577.00 from holding Austevoll Seafood ASA or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Roebuck Food Group vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Roebuck Food Group |
| Austevoll Seafood ASA |
Roebuck Food and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Austevoll Seafood
The main advantage of trading using opposite Roebuck Food and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck 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.| Roebuck Food vs. Lendinvest PLC | Roebuck Food vs. Home Depot | Roebuck Food vs. National Bank of | Roebuck Food vs. St Galler Kantonalbank |
| Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Samsung Electronics Co | Austevoll Seafood vs. Hyundai Motor | Austevoll Seafood vs. Toyota Motor 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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