Correlation Between SalMar ASA and Artisan Consumer
Can any of the company-specific risk be diversified away by investing in both SalMar ASA and Artisan Consumer 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 SalMar ASA and Artisan Consumer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and Artisan Consumer Goods, you can compare the effects of market volatilities on SalMar ASA and Artisan Consumer 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 SalMar ASA with a short position of Artisan Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and Artisan Consumer.
Diversification Opportunities for SalMar ASA and Artisan Consumer
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SalMar and Artisan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods and SalMar 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 SalMar ASA are associated (or correlated) with Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of SalMar ASA i.e., SalMar ASA and Artisan Consumer go up and down completely randomly.
Pair Corralation between SalMar ASA and Artisan Consumer
Assuming the 90 days horizon SalMar ASA is expected to generate 54.37 times less return on investment than Artisan Consumer. But when comparing it to its historical volatility, SalMar ASA is 6.28 times less risky than Artisan Consumer. It trades about 0.01 of its potential returns per unit of risk. Artisan Consumer Goods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Artisan Consumer Goods on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Artisan Consumer Goods or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SalMar ASA vs. Artisan Consumer Goods
Performance |
| Timeline |
| SalMar ASA |
| Artisan Consumer Goods |
SalMar ASA and Artisan Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SalMar ASA and Artisan Consumer
The main advantage of trading using opposite SalMar ASA and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA position performs unexpectedly, Artisan Consumer 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 Artisan Consumer will offset losses from the drop in Artisan Consumer's long position.| SalMar ASA vs. SLC Agricola SA | SalMar ASA vs. Cal Maine Foods | SalMar ASA vs. Bunge Limited | SalMar ASA vs. Austevoll Seafood ASA |
| Artisan Consumer vs. South32 Limited | Artisan Consumer vs. NioCorp Developments Ltd | Artisan Consumer vs. HUMANA INC | Artisan Consumer vs. SCOR PK |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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