Correlation Between Austevoll Seafood and Lightbridge
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Lightbridge 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 Lightbridge 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 Lightbridge, you can compare the effects of market volatilities on Austevoll Seafood and Lightbridge 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 Lightbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Lightbridge.
Diversification Opportunities for Austevoll Seafood and Lightbridge
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and Lightbridge is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Lightbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightbridge 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 Lightbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightbridge has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Lightbridge go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Lightbridge
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.31 times less return on investment than Lightbridge. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.62 times less risky than Lightbridge. It trades about 0.09 of its potential returns per unit of risk. Lightbridge is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Lightbridge on August 28, 2024 and sell it today you would earn a total of 326.00 from holding Lightbridge or generate 116.85% 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. Lightbridge
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Lightbridge |
Austevoll Seafood and Lightbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Lightbridge
The main advantage of trading using opposite Austevoll Seafood and Lightbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Lightbridge 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 Lightbridge will offset losses from the drop in Lightbridge's long position.| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
| Lightbridge vs. PT Bank Maybank | Lightbridge vs. QBE Insurance Group | Lightbridge vs. IMAGIN MEDICAL INC | Lightbridge vs. JSC Halyk bank |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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