Correlation Between Austevoll Seafood and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Astral 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 Astral 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 Astral Foods Limited, you can compare the effects of market volatilities on Austevoll Seafood and Astral 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Astral Foods.
Diversification Opportunities for Austevoll Seafood and Astral Foods
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Astral is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Astral Foods go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Astral Foods
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.96 times less return on investment than Astral Foods. In addition to that, Austevoll Seafood is 1.45 times more volatile than Astral Foods Limited. It trades about 0.06 of its total potential returns per unit of risk. Astral Foods Limited is currently generating about 0.17 per unit of volatility. If you would invest 865.00 in Astral Foods Limited on August 25, 2024 and sell it today you would earn a total of 40.00 from holding Astral Foods Limited or generate 4.62% 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. Astral Foods Limited
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Astral Foods Limited |
Austevoll Seafood and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Astral Foods
The main advantage of trading using opposite Austevoll Seafood and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Astral 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Austevoll Seafood vs. Charoen Pokphand Foods | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| Astral Foods vs. Charoen Pokphand Foods | Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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