Correlation Between Salmon Evolution and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Salmon Evolution 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 Salmon Evolution and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salmon Evolution Holding and Austevoll Seafood ASA, you can compare the effects of market volatilities on Salmon Evolution 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 Salmon Evolution with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salmon Evolution and Austevoll Seafood.
Diversification Opportunities for Salmon Evolution and Austevoll Seafood
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salmon and Austevoll is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Salmon Evolution Holding 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 Salmon Evolution 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 Salmon Evolution Holding 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 Salmon Evolution i.e., Salmon Evolution and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Salmon Evolution and Austevoll Seafood
Assuming the 90 days trading horizon Salmon Evolution Holding is expected to under-perform the Austevoll Seafood. In addition to that, Salmon Evolution is 1.14 times more volatile than Austevoll Seafood ASA. It trades about -0.2 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.01 per unit of volatility. If you would invest 10,640 in Austevoll Seafood ASA on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Austevoll Seafood ASA or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salmon Evolution Holding vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Salmon Evolution Holding |
| Austevoll Seafood ASA |
Salmon Evolution and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salmon Evolution and Austevoll Seafood
The main advantage of trading using opposite Salmon Evolution and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salmon Evolution 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.| Salmon Evolution vs. Melhus Sparebank | Salmon Evolution vs. Romsdal Sparebank | Salmon Evolution vs. Aurskog Sparebank | Salmon Evolution vs. Helgeland Sparebank |
| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |