Correlation Between Austevoll Seafood and Natural Health
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Natural Health 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 Natural Health 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 Natural Health Trends, you can compare the effects of market volatilities on Austevoll Seafood and Natural Health 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 Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Natural Health.
Diversification Opportunities for Austevoll Seafood and Natural Health
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austevoll and Natural is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends 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 Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Natural Health go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Natural Health
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.06 times less return on investment than Natural Health. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.56 times less risky than Natural Health. It trades about 0.09 of its potential returns per unit of risk. Natural Health Trends is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Natural Health Trends on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Natural Health Trends or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Natural Health Trends
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Natural Health Trends |
Austevoll Seafood and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Natural Health
The main advantage of trading using opposite Austevoll Seafood and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Austevoll Seafood vs. Cleanaway Waste Management | Austevoll Seafood vs. DOCDATA | Austevoll Seafood vs. ULTRA CLEAN HLDGS | Austevoll Seafood vs. Beyond Meat |
| Natural Health vs. COMBA TELECOM SYST | Natural Health vs. EAGLE MATERIALS | Natural Health vs. Cogent Communications Holdings | Natural Health vs. SK TELECOM TDADR |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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