Correlation Between Austevoll Seafood and EBRO FOODS
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and EBRO 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 EBRO 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 EBRO FOODS, you can compare the effects of market volatilities on Austevoll Seafood and EBRO 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 EBRO FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and EBRO FOODS.
Diversification Opportunities for Austevoll Seafood and EBRO FOODS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and EBRO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and EBRO FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBRO FOODS 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 EBRO FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBRO FOODS has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and EBRO FOODS go up and down completely randomly.
Pair Corralation between Austevoll Seafood and EBRO FOODS
Assuming the 90 days horizon Austevoll Seafood ASA is expected to under-perform the EBRO FOODS. In addition to that, Austevoll Seafood is 2.41 times more volatile than EBRO FOODS. It trades about -0.15 of its total potential returns per unit of risk. EBRO FOODS is currently generating about 0.05 per unit of volatility. If you would invest 1,574 in EBRO FOODS on October 14, 2024 and sell it today you would earn a total of 10.00 from holding EBRO FOODS or generate 0.64% 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. EBRO FOODS
Performance |
| Timeline |
| Austevoll Seafood ASA |
| EBRO FOODS |
Austevoll Seafood and EBRO FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and EBRO FOODS
The main advantage of trading using opposite Austevoll Seafood and EBRO FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, EBRO 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 EBRO FOODS will offset losses from the drop in EBRO FOODS's long position.| Austevoll Seafood vs. CHINA SOUTHN AIR H | Austevoll Seafood vs. DELTA AIR LINES | Austevoll Seafood vs. Live Nation Entertainment | Austevoll Seafood vs. MYFAIR GOLD P |
| EBRO FOODS vs. GungHo Online Entertainment | EBRO FOODS vs. Austevoll Seafood ASA | EBRO FOODS vs. Cal Maine Foods | EBRO FOODS vs. Lifeway 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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