Correlation Between Austevoll Seafood and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Austevoll Seafood and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Jacquet Metal.
Diversification Opportunities for Austevoll Seafood and Jacquet Metal
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austevoll and Jacquet is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Jacquet Metal go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Jacquet Metal
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.19 times more return on investment than Jacquet Metal. However, Austevoll Seafood is 1.19 times more volatile than Jacquet Metal Service. It trades about 0.21 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.33 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Jacquet Metal Service
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Jacquet Metal Service |
Austevoll Seafood and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Jacquet Metal
The main advantage of trading using opposite Austevoll Seafood and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Austevoll Seafood vs. Salesforce | Austevoll Seafood vs. TRADEDOUBLER AB SK | Austevoll Seafood vs. FANDIFI TECHNOLOGY P | Austevoll Seafood vs. TRADELINK ELECTRON |
| Jacquet Metal vs. Ringmetall SE | Jacquet Metal vs. GALENA MINING LTD | Jacquet Metal vs. PKSHA TECHNOLOGY INC | Jacquet Metal vs. De Grey Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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