Correlation Between SENECA FOODS-A and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both SENECA FOODS-A 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 SENECA FOODS-A and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENECA FOODS A and Austevoll Seafood ASA, you can compare the effects of market volatilities on SENECA FOODS-A 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 SENECA FOODS-A with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENECA FOODS-A and Austevoll Seafood.
Diversification Opportunities for SENECA FOODS-A and Austevoll Seafood
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SENECA and Austevoll is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SENECA FOODS A 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 SENECA FOODS-A 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 SENECA FOODS A 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 SENECA FOODS-A i.e., SENECA FOODS-A and Austevoll Seafood go up and down completely randomly.
Pair Corralation between SENECA FOODS-A and Austevoll Seafood
Assuming the 90 days trading horizon SENECA FOODS A is expected to under-perform the Austevoll Seafood. But the stock apears to be less risky and, when comparing its historical volatility, SENECA FOODS A is 1.55 times less risky than Austevoll Seafood. The stock trades about -0.26 of its potential returns per unit of risk. The Austevoll Seafood ASA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Austevoll Seafood ASA on November 3, 2024 and sell it today you would earn a total of 95.00 from holding Austevoll Seafood ASA or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENECA FOODS A vs. Austevoll Seafood ASA
Performance |
| Timeline |
| SENECA FOODS A |
| Austevoll Seafood ASA |
SENECA FOODS-A and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENECA FOODS-A and Austevoll Seafood
The main advantage of trading using opposite SENECA FOODS-A and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENECA FOODS-A 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.| SENECA FOODS-A vs. ecotel communication ag | SENECA FOODS-A vs. TELECOM ITALRISP ADR10 | SENECA FOODS-A vs. Hollywood Bowl Group | SENECA FOODS-A vs. Cars Inc |
| Austevoll Seafood vs. IMAGIN MEDICAL INC | Austevoll Seafood vs. PULSION Medical Systems | Austevoll Seafood vs. Compugroup Medical SE | Austevoll Seafood vs. Molson Coors Beverage |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |