Correlation Between Austevoll Seafood and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and PENN Entertainment 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 PENN Entertainment 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 PENN Entertainment, you can compare the effects of market volatilities on Austevoll Seafood and PENN Entertainment 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 PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and PENN Entertainment.
Diversification Opportunities for Austevoll Seafood and PENN Entertainment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and PENN is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment 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 PENN Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and PENN Entertainment go up and down completely randomly.
Pair Corralation between Austevoll Seafood and PENN Entertainment
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.73 times more return on investment than PENN Entertainment. However, Austevoll Seafood ASA is 1.37 times less risky than PENN Entertainment. It trades about 0.0 of its potential returns per unit of risk. PENN Entertainment is currently generating about -0.02 per unit of risk. If you would invest 822.00 in Austevoll Seafood ASA on October 11, 2024 and sell it today you would lose (8.00) from holding Austevoll Seafood ASA or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. PENN Entertainment
Performance |
| Timeline |
| Austevoll Seafood ASA |
| PENN Entertainment |
Austevoll Seafood and PENN Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and PENN Entertainment
The main advantage of trading using opposite Austevoll Seafood and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, PENN Entertainment 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 PENN Entertainment will offset losses from the drop in PENN Entertainment's long position.| Austevoll Seafood vs. MICRONIC MYDATA | Austevoll Seafood vs. TITANIUM TRANSPORTGROUP | Austevoll Seafood vs. NTT DATA | Austevoll Seafood vs. SAFEROADS HLDGS |
| PENN Entertainment vs. PARKEN Sport Entertainment | PENN Entertainment vs. SEI INVESTMENTS | PENN Entertainment vs. Japan Asia Investment | PENN Entertainment vs. WisdomTree Investments |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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