Correlation Between Austevoll Seafood and ALERION CLEANPOWER
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and ALERION CLEANPOWER 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 ALERION CLEANPOWER 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 ALERION CLEANPOWER, you can compare the effects of market volatilities on Austevoll Seafood and ALERION CLEANPOWER 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 ALERION CLEANPOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and ALERION CLEANPOWER.
Diversification Opportunities for Austevoll Seafood and ALERION CLEANPOWER
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and ALERION is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ALERION CLEANPOWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALERION CLEANPOWER 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 ALERION CLEANPOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALERION CLEANPOWER has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and ALERION CLEANPOWER go up and down completely randomly.
Pair Corralation between Austevoll Seafood and ALERION CLEANPOWER
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.21 times more return on investment than ALERION CLEANPOWER. However, Austevoll Seafood is 1.21 times more volatile than ALERION CLEANPOWER. It trades about -0.1 of its potential returns per unit of risk. ALERION CLEANPOWER is currently generating about -0.18 per unit of risk. If you would invest 847.00 in Austevoll Seafood ASA on October 16, 2024 and sell it today you would lose (33.00) from holding Austevoll Seafood ASA or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. ALERION CLEANPOWER
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ALERION CLEANPOWER |
Austevoll Seafood and ALERION CLEANPOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and ALERION CLEANPOWER
The main advantage of trading using opposite Austevoll Seafood and ALERION CLEANPOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, ALERION CLEANPOWER 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 ALERION CLEANPOWER will offset losses from the drop in ALERION CLEANPOWER's long position.| Austevoll Seafood vs. TRADELINK ELECTRON | Austevoll Seafood vs. Automatic Data Processing | Austevoll Seafood vs. MICRONIC MYDATA | Austevoll Seafood vs. CANON MARKETING JP |
| ALERION CLEANPOWER vs. Astral Foods Limited | ALERION CLEANPOWER vs. CN MODERN DAIRY | ALERION CLEANPOWER vs. EBRO FOODS | ALERION CLEANPOWER vs. Austevoll Seafood ASA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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