Correlation Between Austevoll Seafood and LION ONE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on Austevoll Seafood and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and LION ONE.
Diversification Opportunities for Austevoll Seafood and LION ONE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and LION is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and LION ONE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and LION ONE
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.52 times more return on investment than LION ONE. However, Austevoll Seafood ASA is 1.94 times less risky than LION ONE. It trades about 0.12 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.23 per unit of risk. If you would invest 819.00 in Austevoll Seafood ASA on August 27, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. LION ONE METALS
Performance |
| Timeline |
| Austevoll Seafood ASA |
| LION ONE METALS |
Austevoll Seafood and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and LION ONE
The main advantage of trading using opposite Austevoll Seafood and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| Austevoll Seafood vs. Cleanaway Waste Management | Austevoll Seafood vs. DOCDATA | Austevoll Seafood vs. ULTRA CLEAN HLDGS | Austevoll Seafood vs. Beyond Meat |
| LION ONE vs. Austevoll Seafood ASA | LION ONE vs. TreeHouse Foods | LION ONE vs. National Retail Properties | LION ONE vs. AIR PRODCHEMICALS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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