Correlation Between Austevoll Seafood and CN MODERN
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and CN MODERN 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 Austevoll Seafood and CN MODERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austevoll Seafood ASA and CN MODERN DAIRY, you can compare the effects of market volatilities on Austevoll Seafood and CN MODERN 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 Austevoll Seafood with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and CN MODERN.
Diversification Opportunities for Austevoll Seafood and CN MODERN
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austevoll and 07M is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and Austevoll Seafood 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 Austevoll Seafood ASA are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and CN MODERN go up and down completely randomly.
Pair Corralation between Austevoll Seafood and CN MODERN
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.12 times more return on investment than CN MODERN. However, Austevoll Seafood is 1.12 times more volatile than CN MODERN DAIRY. It trades about 0.18 of its potential returns per unit of risk. CN MODERN DAIRY is currently generating about 0.01 per unit of risk. If you would invest 807.00 in Austevoll Seafood ASA on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Austevoll Seafood ASA or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. CN MODERN DAIRY
Performance |
| Timeline |
| Austevoll Seafood ASA |
| CN MODERN DAIRY |
Austevoll Seafood and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and CN MODERN
The main advantage of trading using opposite Austevoll Seafood and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| Austevoll Seafood vs. GRIFFIN MINING LTD | Austevoll Seafood vs. PennantPark Investment | Austevoll Seafood vs. Jacquet Metal Service | Austevoll Seafood vs. Apollo Investment Corp |
| CN MODERN vs. Fast Retailing Co | CN MODERN vs. National Retail Properties | CN MODERN vs. AAC TECHNOLOGHLDGADR | CN MODERN vs. GLG LIFE TECH |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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