Correlation Between Austevoll Seafood and Westgold Resources
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Westgold Resources 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 Westgold Resources 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 Westgold Resources, you can compare the effects of market volatilities on Austevoll Seafood and Westgold Resources 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 Westgold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Westgold Resources.
Diversification Opportunities for Austevoll Seafood and Westgold Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austevoll and Westgold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Westgold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westgold Resources 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 Westgold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westgold Resources has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Westgold Resources go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Westgold Resources
If you would invest 0.00 in Westgold Resources on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Westgold Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Westgold Resources
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Westgold Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Austevoll Seafood and Westgold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Westgold Resources
The main advantage of trading using opposite Austevoll Seafood and Westgold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Westgold Resources 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 Westgold Resources will offset losses from the drop in Westgold Resources' long position.| Austevoll Seafood vs. MICRONIC MYDATA | Austevoll Seafood vs. TITANIUM TRANSPORTGROUP | Austevoll Seafood vs. NTT DATA | Austevoll Seafood vs. SAFEROADS HLDGS |
| Westgold Resources vs. ON SEMICONDUCTOR | Westgold Resources vs. Cogent Communications Holdings | Westgold Resources vs. SOCKET MOBILE NEW | Westgold Resources vs. T Mobile |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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