Correlation Between Austevoll Seafood and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Chuangs China 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 Chuangs China 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 Chuangs China Investments, you can compare the effects of market volatilities on Austevoll Seafood and Chuangs China 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 Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Chuangs China.
Diversification Opportunities for Austevoll Seafood and Chuangs China
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Chuangs is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments 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 Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Chuangs China go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Chuangs China
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.04 times more return on investment than Chuangs China. However, Austevoll Seafood is 1.04 times more volatile than Chuangs China Investments. It trades about 0.06 of its potential returns per unit of risk. Chuangs China Investments is currently generating about -0.01 per unit of risk. If you would invest 304.00 in Austevoll Seafood ASA on August 31, 2024 and sell it today you would earn a total of 562.00 from holding Austevoll Seafood ASA or generate 184.87% 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. Chuangs China Investments
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Chuangs China Investments |
Austevoll Seafood and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Chuangs China
The main advantage of trading using opposite Austevoll Seafood and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| Chuangs China vs. Sun Hung Kai | Chuangs China vs. China Overseas Land | Chuangs China vs. CHINA VANKE TD | Chuangs China vs. Longfor Group Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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