Correlation Between Austevoll Seafood and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and ASML HOLDING 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 ASML HOLDING 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 ASML HOLDING NY, you can compare the effects of market volatilities on Austevoll Seafood and ASML HOLDING 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 ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and ASML HOLDING.
Diversification Opportunities for Austevoll Seafood and ASML HOLDING
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and ASML is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY 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 ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and ASML HOLDING go up and down completely randomly.
Pair Corralation between Austevoll Seafood and ASML HOLDING
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 2.31 times more return on investment than ASML HOLDING. However, Austevoll Seafood is 2.31 times more volatile than ASML HOLDING NY. It trades about 0.05 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about 0.03 per unit of risk. If you would invest 345.00 in Austevoll Seafood ASA on September 2, 2024 and sell it today you would earn a total of 510.00 from holding Austevoll Seafood ASA or generate 147.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. ASML HOLDING NY
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ASML HOLDING NY |
Austevoll Seafood and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and ASML HOLDING
The main advantage of trading using opposite Austevoll Seafood and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| ASML HOLDING vs. The Boston Beer | ASML HOLDING vs. Austevoll Seafood ASA | ASML HOLDING vs. NIPPON MEAT PACKERS | ASML HOLDING vs. Dairy Farm International |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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