Correlation Between Austevoll Seafood and Air Lease
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Air Lease 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 Air Lease 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 Air Lease, you can compare the effects of market volatilities on Austevoll Seafood and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Air Lease.
Diversification Opportunities for Austevoll Seafood and Air Lease
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Air is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Air Lease go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Air Lease
Assuming the 90 days horizon Austevoll Seafood is expected to generate 2.74 times less return on investment than Air Lease. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.13 times less risky than Air Lease. It trades about 0.12 of its potential returns per unit of risk. Air Lease is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,140 in Air Lease on August 31, 2024 and sell it today you would earn a total of 600.00 from holding Air Lease or generate 14.49% 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. Air Lease
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Air Lease |
Austevoll Seafood and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Air Lease
The main advantage of trading using opposite Austevoll Seafood and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| Air Lease vs. Strategic Education | Air Lease vs. VIRGIN WINES UK | Air Lease vs. American Public Education | Air Lease vs. Gol Intelligent Airlines |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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