Correlation Between Wilmar International and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Wilmar International 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 Wilmar International and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmar International and Austevoll Seafood ASA, you can compare the effects of market volatilities on Wilmar International 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 Wilmar International with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmar International and Austevoll Seafood.
Diversification Opportunities for Wilmar International and Austevoll Seafood
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wilmar and Austevoll is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wilmar International 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 Wilmar International 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 Wilmar International 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 Wilmar International i.e., Wilmar International and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Wilmar International and Austevoll Seafood
Assuming the 90 days horizon Wilmar International is expected to under-perform the Austevoll Seafood. But the pink sheet apears to be less risky and, when comparing its historical volatility, Wilmar International is 1.25 times less risky than Austevoll Seafood. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Austevoll Seafood ASA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Austevoll Seafood ASA on August 24, 2024 and sell it today you would earn a total of 10.00 from holding Austevoll Seafood ASA or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.48% |
| Values | Daily Returns |
Wilmar International vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Wilmar International |
| Austevoll Seafood ASA |
Wilmar International and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmar International and Austevoll Seafood
The main advantage of trading using opposite Wilmar International and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmar International 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.| Wilmar International vs. Avi Ltd ADR | Wilmar International vs. Altavoz Entertainment | Wilmar International vs. The a2 Milk | Wilmar International vs. Aryzta AG PK |
| Austevoll Seafood vs. Avi Ltd ADR | Austevoll Seafood vs. Altavoz Entertainment | Austevoll Seafood vs. The a2 Milk | Austevoll Seafood vs. Aryzta AG 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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