Correlation Between Austevoll Seafood and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on Austevoll Seafood and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and SYSTEMAIR.
Diversification Opportunities for Austevoll Seafood and SYSTEMAIR
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and SYSTEMAIR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Austevoll Seafood and SYSTEMAIR
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.97 times more return on investment than SYSTEMAIR. However, Austevoll Seafood ASA is 1.03 times less risky than SYSTEMAIR. It trades about 0.22 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about -0.11 per unit of risk. If you would invest 844.00 in Austevoll Seafood ASA on November 5, 2024 and sell it today you would earn a total of 96.00 from holding Austevoll Seafood ASA or generate 11.37% 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. SYSTEMAIR AB
Performance |
| Timeline |
| Austevoll Seafood ASA |
| SYSTEMAIR AB |
Austevoll Seafood and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and SYSTEMAIR
The main advantage of trading using opposite Austevoll Seafood and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Austevoll Seafood vs. REINET INVESTMENTS SCA | Austevoll Seafood vs. SEI INVESTMENTS | Austevoll Seafood vs. CARSALESCOM | Austevoll Seafood vs. Gladstone Investment |
| SYSTEMAIR vs. Lifeway Foods | SYSTEMAIR vs. United Natural Foods | SYSTEMAIR vs. FORTRESS BIOTECHPRFA 25 | SYSTEMAIR vs. Tyson Foods |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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