Correlation Between Austevoll Seafood and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Geely Automobile 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 Geely Automobile 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 Geely Automobile Holdings, you can compare the effects of market volatilities on Austevoll Seafood and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Geely Automobile.
Diversification Opportunities for Austevoll Seafood and Geely Automobile
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Geely is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Geely Automobile go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Geely Automobile
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 2.04 times more return on investment than Geely Automobile. However, Austevoll Seafood is 2.04 times more volatile than Geely Automobile Holdings. It trades about 0.05 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about 0.07 per unit of risk. If you would invest 347.00 in Austevoll Seafood ASA on October 16, 2024 and sell it today you would earn a total of 467.00 from holding Austevoll Seafood ASA or generate 134.58% 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. Geely Automobile Holdings
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Geely Automobile Holdings |
Austevoll Seafood and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Geely Automobile
The main advantage of trading using opposite Austevoll Seafood and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile's long position.| Austevoll Seafood vs. Nanjing Panda Electronics | Austevoll Seafood vs. Corsair Gaming | Austevoll Seafood vs. Benchmark Electronics | Austevoll Seafood vs. Samsung Electronics Co |
| Geely Automobile vs. Austevoll Seafood ASA | Geely Automobile vs. Aristocrat Leisure Limited | Geely Automobile vs. ARISTOCRAT LEISURE | Geely Automobile vs. Ebro Foods SA |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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