Correlation Between Austevoll Seafood and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and HF FOODS 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 HF FOODS 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 HF FOODS GRP, you can compare the effects of market volatilities on Austevoll Seafood and HF FOODS 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 HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and HF FOODS.
Diversification Opportunities for Austevoll Seafood and HF FOODS
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and 3GX is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP 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 HF FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF FOODS GRP has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and HF FOODS go up and down completely randomly.
Pair Corralation between Austevoll Seafood and HF FOODS
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.0 times less return on investment than HF FOODS. But when comparing it to its historical volatility, Austevoll Seafood ASA is 2.68 times less risky than HF FOODS. It trades about 0.08 of its potential returns per unit of risk. HF FOODS GRP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 322.00 in HF FOODS GRP on September 3, 2024 and sell it today you would earn a total of 18.00 from holding HF FOODS GRP or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. HF FOODS GRP
Performance |
| Timeline |
| Austevoll Seafood ASA |
| HF FOODS GRP |
Austevoll Seafood and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and HF FOODS
The main advantage of trading using opposite Austevoll Seafood and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, HF FOODS 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 HF FOODS will offset losses from the drop in HF FOODS's long position.| Austevoll Seafood vs. Infrastrutture Wireless Italiane | Austevoll Seafood vs. Tower One Wireless | Austevoll Seafood vs. 24SEVENOFFICE GROUP AB | Austevoll Seafood vs. MINCO SILVER |
| HF FOODS vs. SHIP HEALTHCARE HLDGINC | HF FOODS vs. EEDUCATION ALBERT AB | HF FOODS vs. DEVRY EDUCATION GRP | HF FOODS vs. Grand Canyon Education |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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