Correlation Between Austevoll Seafood and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on Austevoll Seafood and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and TRADEGATE.
Diversification Opportunities for Austevoll Seafood and TRADEGATE
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austevoll and TRADEGATE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and TRADEGATE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and TRADEGATE
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 6.49 times more return on investment than TRADEGATE. However, Austevoll Seafood is 6.49 times more volatile than TRADEGATE. It trades about 0.08 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.06 per unit of risk. If you would invest 276.00 in Austevoll Seafood ASA on September 2, 2024 and sell it today you would earn a total of 579.00 from holding Austevoll Seafood ASA or generate 209.78% 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. TRADEGATE
Performance |
| Timeline |
| Austevoll Seafood ASA |
| TRADEGATE |
Austevoll Seafood and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and TRADEGATE
The main advantage of trading using opposite Austevoll Seafood and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| TRADEGATE vs. The Hanover Insurance | TRADEGATE vs. United Insurance Holdings | TRADEGATE vs. Consolidated Communications Holdings | TRADEGATE vs. Reinsurance Group of |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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