Correlation Between Austevoll Seafood and CODERE ONLINE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and CODERE ONLINE 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 CODERE ONLINE 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 CODERE ONLINE LUX, you can compare the effects of market volatilities on Austevoll Seafood and CODERE ONLINE 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 CODERE ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and CODERE ONLINE.
Diversification Opportunities for Austevoll Seafood and CODERE ONLINE
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and CODERE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and CODERE ONLINE LUX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CODERE ONLINE LUX 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 CODERE ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CODERE ONLINE LUX has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and CODERE ONLINE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and CODERE ONLINE
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.03 times more return on investment than CODERE ONLINE. However, Austevoll Seafood is 1.03 times more volatile than CODERE ONLINE LUX. It trades about 0.06 of its potential returns per unit of risk. CODERE ONLINE LUX is currently generating about -0.28 per unit of risk. If you would invest 822.00 in Austevoll Seafood ASA on October 21, 2024 and sell it today you would earn a total of 17.00 from holding Austevoll Seafood ASA or generate 2.07% 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. CODERE ONLINE LUX
Performance |
| Timeline |
| Austevoll Seafood ASA |
| CODERE ONLINE LUX |
Austevoll Seafood and CODERE ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and CODERE ONLINE
The main advantage of trading using opposite Austevoll Seafood and CODERE ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, CODERE ONLINE 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 CODERE ONLINE will offset losses from the drop in CODERE ONLINE's long position.| Austevoll Seafood vs. BRIT AMER TOBACCO | Austevoll Seafood vs. Warner Music Group | Austevoll Seafood vs. GEAR4MUSIC LS 10 | Austevoll Seafood vs. TT Electronics PLC |
| CODERE ONLINE vs. Austevoll Seafood ASA | CODERE ONLINE vs. LOANDEPOT INC A | CODERE ONLINE vs. Sixt Leasing SE | CODERE ONLINE vs. GWILLI FOOD |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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