Correlation Between Austevoll Seafood and Hang Seng
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Hang Seng 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 Hang Seng 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 Hang Seng Bank, you can compare the effects of market volatilities on Austevoll Seafood and Hang Seng 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 Hang Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Hang Seng.
Diversification Opportunities for Austevoll Seafood and Hang Seng
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austevoll and Hang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Hang Seng Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng Bank 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 Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng Bank has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Hang Seng go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Hang Seng
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.18 times less return on investment than Hang Seng. In addition to that, Austevoll Seafood is 1.34 times more volatile than Hang Seng Bank. It trades about 0.08 of its total potential returns per unit of risk. Hang Seng Bank is currently generating about 0.12 per unit of volatility. If you would invest 1,130 in Hang Seng Bank on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Hang Seng Bank or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Hang Seng Bank
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Hang Seng Bank |
Austevoll Seafood and Hang Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Hang Seng
The main advantage of trading using opposite Austevoll Seafood and Hang Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Hang Seng 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 Hang Seng will offset losses from the drop in Hang Seng's long position.| Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. Mowi ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp |
| Hang Seng vs. Zoom Video Communications | Hang Seng vs. Taiwan Semiconductor Manufacturing | Hang Seng vs. ALERION CLEANPOWER | Hang Seng vs. CVW CLEANTECH 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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