Correlation Between Austevoll Seafood and Mhlbauer Holding
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Mhlbauer Holding 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 Mhlbauer Holding 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 Mhlbauer Holding AG, you can compare the effects of market volatilities on Austevoll Seafood and Mhlbauer Holding 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 Mhlbauer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Mhlbauer Holding.
Diversification Opportunities for Austevoll Seafood and Mhlbauer Holding
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and Mhlbauer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Mhlbauer Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mhlbauer Holding 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 Mhlbauer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mhlbauer Holding has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Mhlbauer Holding go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Mhlbauer Holding
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.82 times less return on investment than Mhlbauer Holding. In addition to that, Austevoll Seafood is 1.03 times more volatile than Mhlbauer Holding AG. It trades about 0.17 of its total potential returns per unit of risk. Mhlbauer Holding AG is currently generating about 0.31 per unit of volatility. If you would invest 3,900 in Mhlbauer Holding AG on October 25, 2024 and sell it today you would earn a total of 420.00 from holding Mhlbauer Holding AG or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Mhlbauer Holding AG
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Mhlbauer Holding |
Austevoll Seafood and Mhlbauer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Mhlbauer Holding
The main advantage of trading using opposite Austevoll Seafood and Mhlbauer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Mhlbauer Holding 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 Mhlbauer Holding will offset losses from the drop in Mhlbauer Holding's long position.| Austevoll Seafood vs. BJs Wholesale Club | Austevoll Seafood vs. MCEWEN MINING INC | Austevoll Seafood vs. STGEORGE MINING LTD | Austevoll Seafood vs. WT OFFSHORE |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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