Correlation Between Austevoll Seafood and Cass Information
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on Austevoll Seafood and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Cass Information.
Diversification Opportunities for Austevoll Seafood and Cass Information
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and Cass is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Cass Information go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Cass Information
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.98 times less return on investment than Cass Information. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.1 times less risky than Cass Information. It trades about 0.11 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Cass Information Systems on August 29, 2024 and sell it today you would earn a total of 360.00 from holding Cass Information Systems or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Cass Information Systems
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Cass Information Systems |
Austevoll Seafood and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Cass Information
The main advantage of trading using opposite Austevoll Seafood and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
| Cass Information vs. JJ SNACK FOODS | Cass Information vs. CN MODERN DAIRY | Cass Information vs. AUST AGRICULTURAL | Cass Information vs. AUSNUTRIA DAIRY |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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