Correlation Between Austevoll Seafood and National Beverage
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and National Beverage 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 National Beverage 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 National Beverage Corp, you can compare the effects of market volatilities on Austevoll Seafood and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and National Beverage.
Diversification Opportunities for Austevoll Seafood and National Beverage
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and National is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and National Beverage go up and down completely randomly.
Pair Corralation between Austevoll Seafood and National Beverage
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 3.72 times more return on investment than National Beverage. However, Austevoll Seafood is 3.72 times more volatile than National Beverage Corp. It trades about 0.08 of its potential returns per unit of risk. National Beverage Corp is currently generating about 0.03 per unit of risk. If you would invest 276.00 in Austevoll Seafood ASA on September 2, 2024 and sell it today you would earn a total of 579.00 from holding Austevoll Seafood ASA or generate 209.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. National Beverage Corp
Performance |
| Timeline |
| Austevoll Seafood ASA |
| National Beverage Corp |
Austevoll Seafood and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and National Beverage
The main advantage of trading using opposite Austevoll Seafood and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| National Beverage vs. PepsiCo | National Beverage vs. Superior Plus Corp | National Beverage vs. NMI Holdings | National Beverage vs. Origin Agritech |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |