Correlation Between Austevoll Seafood and EPlay Digital
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and EPlay Digital 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 EPlay Digital 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 ePlay Digital, you can compare the effects of market volatilities on Austevoll Seafood and EPlay Digital 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 EPlay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and EPlay Digital.
Diversification Opportunities for Austevoll Seafood and EPlay Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austevoll and EPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ePlay Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlay Digital 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 EPlay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlay Digital has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and EPlay Digital go up and down completely randomly.
Pair Corralation between Austevoll Seafood and EPlay Digital
Assuming the 90 days horizon Austevoll Seafood is expected to generate 59.12 times less return on investment than EPlay Digital. But when comparing it to its historical volatility, Austevoll Seafood ASA is 19.94 times less risky than EPlay Digital. It trades about 0.05 of its potential returns per unit of risk. ePlay Digital is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.60 in ePlay Digital on November 9, 2024 and sell it today you would lose (0.50) from holding ePlay Digital or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. ePlay Digital
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ePlay Digital |
Austevoll Seafood and EPlay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and EPlay Digital
The main advantage of trading using opposite Austevoll Seafood and EPlay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, EPlay Digital 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 EPlay Digital will offset losses from the drop in EPlay Digital's long position.| Austevoll Seafood vs. MidCap Financial Investment | Austevoll Seafood vs. Investment Latour AB | Austevoll Seafood vs. GAMING FAC SA | Austevoll Seafood vs. Diversified Healthcare Trust |
| EPlay Digital vs. BANKINTER ADR 2007 | EPlay Digital vs. UNICREDIT SPA ADR | EPlay Digital vs. TELECOM ITALRISP ADR10 | EPlay Digital vs. Iridium Communications |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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