Correlation Between Austevoll Seafood and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Hollywood Bowl 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 Hollywood Bowl 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 Hollywood Bowl Group, you can compare the effects of market volatilities on Austevoll Seafood and Hollywood Bowl 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 Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Hollywood Bowl.
Diversification Opportunities for Austevoll Seafood and Hollywood Bowl
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austevoll and Hollywood is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Hollywood Bowl Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Bowl Group 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 Hollywood Bowl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Bowl Group has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Hollywood Bowl
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.32 times more return on investment than Hollywood Bowl. However, Austevoll Seafood is 1.32 times more volatile than Hollywood Bowl Group. It trades about 0.12 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.01 per unit of risk. If you would invest 821.00 in Austevoll Seafood ASA on August 30, 2024 and sell it today you would earn a total of 39.00 from holding Austevoll Seafood ASA or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Hollywood Bowl Group
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Hollywood Bowl Group |
Austevoll Seafood and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Hollywood Bowl
The main advantage of trading using opposite Austevoll Seafood and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Hollywood Bowl 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 Hollywood Bowl will offset losses from the drop in Hollywood Bowl's long position.| Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
| Hollywood Bowl vs. Superior Plus Corp | Hollywood Bowl vs. NMI Holdings | Hollywood Bowl vs. SIVERS SEMICONDUCTORS AB | Hollywood Bowl vs. Talanx AG |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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