Correlation Between Austevoll Seafood and ITALIAN WINE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and ITALIAN WINE 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 ITALIAN WINE 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 ITALIAN WINE BRANDS, you can compare the effects of market volatilities on Austevoll Seafood and ITALIAN WINE 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 ITALIAN WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and ITALIAN WINE.
Diversification Opportunities for Austevoll Seafood and ITALIAN WINE
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and ITALIAN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and ITALIAN WINE BRANDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITALIAN WINE BRANDS 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 ITALIAN WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITALIAN WINE BRANDS has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and ITALIAN WINE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and ITALIAN WINE
Assuming the 90 days horizon Austevoll Seafood ASA is expected to under-perform the ITALIAN WINE. In addition to that, Austevoll Seafood is 1.01 times more volatile than ITALIAN WINE BRANDS. It trades about -0.11 of its total potential returns per unit of risk. ITALIAN WINE BRANDS is currently generating about 0.01 per unit of volatility. If you would invest 2,230 in ITALIAN WINE BRANDS on October 11, 2024 and sell it today you would earn a total of 0.00 from holding ITALIAN WINE BRANDS or generate 0.0% 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. ITALIAN WINE BRANDS
Performance |
| Timeline |
| Austevoll Seafood ASA |
| ITALIAN WINE BRANDS |
Austevoll Seafood and ITALIAN WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and ITALIAN WINE
The main advantage of trading using opposite Austevoll Seafood and ITALIAN WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, ITALIAN WINE 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 ITALIAN WINE will offset losses from the drop in ITALIAN WINE's long position.| Austevoll Seafood vs. MICRONIC MYDATA | Austevoll Seafood vs. TITANIUM TRANSPORTGROUP | Austevoll Seafood vs. NTT DATA | Austevoll Seafood vs. SAFEROADS HLDGS |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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