Correlation Between Austevoll Seafood and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on Austevoll Seafood and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Hyster Yale.
Diversification Opportunities for Austevoll Seafood and Hyster Yale
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austevoll and Hyster is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Hyster Yale go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Hyster Yale
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.67 times more return on investment than Hyster Yale. However, Austevoll Seafood is 1.67 times more volatile than Hyster Yale Materials Handling. It trades about 0.21 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.24 per unit of risk. If you would invest 822.00 in Austevoll Seafood ASA on October 30, 2024 and sell it today you would earn a total of 80.00 from holding Austevoll Seafood ASA or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Hyster Yale Materials |
Austevoll Seafood and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Hyster Yale
The main advantage of trading using opposite Austevoll Seafood and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Austevoll Seafood vs. Salesforce | Austevoll Seafood vs. TRADEDOUBLER AB SK | Austevoll Seafood vs. FANDIFI TECHNOLOGY P | Austevoll Seafood vs. TRADELINK ELECTRON |
| Hyster Yale vs. USWE SPORTS AB | Hyster Yale vs. PLAYWAY SA ZY 10 | Hyster Yale vs. InPlay Oil Corp | Hyster Yale vs. SCOTT TECHNOLOGY |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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