Correlation Between Salmon Evolution and Pf Bakkafrost
Can any of the company-specific risk be diversified away by investing in both Salmon Evolution and Pf Bakkafrost 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 Pf Bakkafrost 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 Pf Bakkafrost, you can compare the effects of market volatilities on Salmon Evolution and Pf Bakkafrost 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 Pf Bakkafrost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salmon Evolution and Pf Bakkafrost.
Diversification Opportunities for Salmon Evolution and Pf Bakkafrost
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salmon and BAKKA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Salmon Evolution Holding and Pf Bakkafrost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pf Bakkafrost 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 Pf Bakkafrost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pf Bakkafrost has no effect on the direction of Salmon Evolution i.e., Salmon Evolution and Pf Bakkafrost go up and down completely randomly.
Pair Corralation between Salmon Evolution and Pf Bakkafrost
Assuming the 90 days trading horizon Salmon Evolution Holding is expected to generate 1.15 times more return on investment than Pf Bakkafrost. However, Salmon Evolution is 1.15 times more volatile than Pf Bakkafrost. It trades about -0.02 of its potential returns per unit of risk. Pf Bakkafrost is currently generating about -0.03 per unit of risk. If you would invest 675.00 in Salmon Evolution Holding on September 1, 2024 and sell it today you would lose (7.00) from holding Salmon Evolution Holding or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Salmon Evolution Holding vs. Pf Bakkafrost
Performance |
| Timeline |
| Salmon Evolution Holding |
| Pf Bakkafrost |
Salmon Evolution and Pf Bakkafrost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salmon Evolution and Pf Bakkafrost
The main advantage of trading using opposite Salmon Evolution and Pf Bakkafrost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salmon Evolution position performs unexpectedly, Pf Bakkafrost 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 Pf Bakkafrost will offset losses from the drop in Pf Bakkafrost's long position.| Salmon Evolution vs. Andfjord Salmon AS | Salmon Evolution vs. Elkem ASA | Salmon Evolution vs. Integrated Wind Solutions | Salmon Evolution vs. Vow 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |