Correlation Between Austevoll Seafood and Federal Home
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Federal Home 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 Federal Home 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 Federal Home Loan, you can compare the effects of market volatilities on Austevoll Seafood and Federal Home 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 Federal Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Federal Home.
Diversification Opportunities for Austevoll Seafood and Federal Home
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austevoll and Federal is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Federal Home Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Home Loan 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 Federal Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Home Loan has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Federal Home go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Federal Home
Assuming the 90 days horizon Austevoll Seafood is expected to generate 11.34 times less return on investment than Federal Home. But when comparing it to its historical volatility, Austevoll Seafood ASA is 6.97 times less risky than Federal Home. It trades about 0.19 of its potential returns per unit of risk. Federal Home Loan is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Federal Home Loan on October 20, 2024 and sell it today you would earn a total of 214.00 from holding Federal Home Loan or generate 84.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Federal Home Loan
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Federal Home Loan |
Austevoll Seafood and Federal Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Federal Home
The main advantage of trading using opposite Austevoll Seafood and Federal Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Federal Home 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 Federal Home will offset losses from the drop in Federal Home's long position.| Austevoll Seafood vs. BRIT AMER TOBACCO | Austevoll Seafood vs. Warner Music Group | Austevoll Seafood vs. GEAR4MUSIC LS 10 | Austevoll Seafood vs. TT Electronics PLC |
| Federal Home vs. Austevoll Seafood ASA | Federal Home vs. PLANT VEDA FOODS | Federal Home vs. MTY Food Group | Federal Home vs. NXP Semiconductors NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |