Correlation Between Vow ASA and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Vow ASA and Proximar 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 Vow ASA and Proximar Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow ASA and Proximar Seafood AS, you can compare the effects of market volatilities on Vow ASA and Proximar 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 Vow ASA with a short position of Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and Proximar Seafood.
Diversification Opportunities for Vow ASA and Proximar Seafood
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vow and Proximar is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood and Vow 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 Vow ASA are associated (or correlated) with Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Vow ASA i.e., Vow ASA and Proximar Seafood go up and down completely randomly.
Pair Corralation between Vow ASA and Proximar Seafood
Assuming the 90 days trading horizon Vow ASA is expected to under-perform the Proximar Seafood. In addition to that, Vow ASA is 2.94 times more volatile than Proximar Seafood AS. It trades about -0.1 of its total potential returns per unit of risk. Proximar Seafood AS is currently generating about 0.02 per unit of volatility. If you would invest 328.00 in Proximar Seafood AS on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Proximar Seafood AS or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow ASA vs. Proximar Seafood AS
Performance |
| Timeline |
| Vow ASA |
| Proximar Seafood |
Vow ASA and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and Proximar Seafood
The main advantage of trading using opposite Vow ASA and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, Proximar 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 Proximar Seafood will offset losses from the drop in Proximar Seafood's long position.| Vow ASA vs. Hexagon Composites ASA | Vow ASA vs. Vow Green Metals | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Aker Carbon Capture |
| Proximar Seafood vs. Odfjell Drilling | Proximar Seafood vs. SD Standard Drilling | Proximar Seafood vs. Jaeren Sparebank | Proximar Seafood vs. Gaming Innovation Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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