Correlation Between Vow Green and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both Vow Green and Biofish Holding 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 Vow Green and Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow Green Metals and Biofish Holding AS, you can compare the effects of market volatilities on Vow Green and Biofish Holding 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 Vow Green with a short position of Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow Green and Biofish Holding.
Diversification Opportunities for Vow Green and Biofish Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vow and Biofish is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vow Green Metals and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS and Vow Green 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 Vow Green Metals are associated (or correlated) with Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of Vow Green i.e., Vow Green and Biofish Holding go up and down completely randomly.
Pair Corralation between Vow Green and Biofish Holding
Assuming the 90 days trading horizon Vow Green is expected to generate 1.08 times less return on investment than Biofish Holding. In addition to that, Vow Green is 2.02 times more volatile than Biofish Holding AS. It trades about 0.01 of its total potential returns per unit of risk. Biofish Holding AS is currently generating about 0.01 per unit of volatility. If you would invest 138.00 in Biofish Holding AS on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Biofish Holding AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow Green Metals vs. Biofish Holding AS
Performance |
| Timeline |
| Vow Green Metals |
| Biofish Holding AS |
Vow Green and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow Green and Biofish Holding
The main advantage of trading using opposite Vow Green and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow Green position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| Vow Green vs. Proximar Seafood AS | Vow Green vs. Polaris Media | Vow Green vs. BW Offshore | Vow Green vs. Romerike Sparebank |
| Biofish Holding vs. Icelandic Salmon As | Biofish Holding vs. Ensurge Micropower ASA | Biofish Holding vs. Gigante Salmon AS | Biofish Holding vs. Aega 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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