Correlation Between Austevoll Seafood and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Austevoll Seafood and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Austevoll Seafood and COLUMBIA SPORTSWEAR
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and COLUMBIA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Austevoll Seafood and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 3.94 times more return on investment than COLUMBIA SPORTSWEAR. However, Austevoll Seafood is 3.94 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.05 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.01 per unit of risk. If you would invest 361.00 in Austevoll Seafood ASA on September 3, 2024 and sell it today you would earn a total of 494.00 from holding Austevoll Seafood ASA or generate 136.84% 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. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Austevoll Seafood ASA |
| COLUMBIA SPORTSWEAR |
Austevoll Seafood and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Austevoll Seafood and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR's long position.| Austevoll Seafood vs. Infrastrutture Wireless Italiane | Austevoll Seafood vs. Tower One Wireless | Austevoll Seafood vs. 24SEVENOFFICE GROUP AB | Austevoll Seafood vs. MINCO SILVER |
| COLUMBIA SPORTSWEAR vs. TOTAL GABON | COLUMBIA SPORTSWEAR vs. Walgreens Boots Alliance | COLUMBIA SPORTSWEAR vs. Peak Resources Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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