Correlation Between Austevoll Seafood and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and CSSC Offshore 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 CSSC Offshore 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 CSSC Offshore Marine, you can compare the effects of market volatilities on Austevoll Seafood and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and CSSC Offshore.
Diversification Opportunities for Austevoll Seafood and CSSC Offshore
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and CSSC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and CSSC Offshore go up and down completely randomly.
Pair Corralation between Austevoll Seafood and CSSC Offshore
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.68 times more return on investment than CSSC Offshore. However, Austevoll Seafood ASA is 1.48 times less risky than CSSC Offshore. It trades about 0.11 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.26 per unit of risk. If you would invest 819.00 in Austevoll Seafood ASA on August 29, 2024 and sell it today you would earn a total of 36.00 from holding Austevoll Seafood ASA or generate 4.4% 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. CSSC Offshore Marine
Performance |
| Timeline |
| Austevoll Seafood ASA |
| CSSC Offshore Marine |
Austevoll Seafood and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and CSSC Offshore
The main advantage of trading using opposite Austevoll Seafood and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
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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