Correlation Between Austevoll Seafood and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and FLOW TRADERS 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 FLOW TRADERS 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 FLOW TRADERS LTD, you can compare the effects of market volatilities on Austevoll Seafood and FLOW TRADERS 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 FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and FLOW TRADERS.
Diversification Opportunities for Austevoll Seafood and FLOW TRADERS
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and FLOW is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD 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 FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and FLOW TRADERS go up and down completely randomly.
Pair Corralation between Austevoll Seafood and FLOW TRADERS
Assuming the 90 days horizon Austevoll Seafood ASA is expected to under-perform the FLOW TRADERS. In addition to that, Austevoll Seafood is 1.02 times more volatile than FLOW TRADERS LTD. It trades about -0.15 of its total potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.23 per unit of volatility. If you would invest 2,178 in FLOW TRADERS LTD on October 14, 2024 and sell it today you would earn a total of 170.00 from holding FLOW TRADERS LTD or generate 7.81% 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. FLOW TRADERS LTD
Performance |
| Timeline |
| Austevoll Seafood ASA |
| FLOW TRADERS LTD |
Austevoll Seafood and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and FLOW TRADERS
The main advantage of trading using opposite Austevoll Seafood and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS's long position.| Austevoll Seafood vs. CHINA SOUTHN AIR H | Austevoll Seafood vs. DELTA AIR LINES | Austevoll Seafood vs. Live Nation Entertainment | Austevoll Seafood vs. MYFAIR GOLD P |
| FLOW TRADERS vs. COFCO Joycome Foods | FLOW TRADERS vs. Austevoll Seafood ASA | FLOW TRADERS vs. FAST RETAIL ADR | FLOW TRADERS vs. BJs Wholesale Club |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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