Correlation Between Austevoll Seafood and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and TreeHouse Foods 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 TreeHouse Foods 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 TreeHouse Foods, you can compare the effects of market volatilities on Austevoll Seafood and TreeHouse Foods 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 TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and TreeHouse Foods.
Diversification Opportunities for Austevoll Seafood and TreeHouse Foods
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austevoll and TreeHouse is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods 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 TreeHouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TreeHouse Foods has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and TreeHouse Foods go up and down completely randomly.
Pair Corralation between Austevoll Seafood and TreeHouse Foods
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.21 times more return on investment than TreeHouse Foods. However, Austevoll Seafood is 1.21 times more volatile than TreeHouse Foods. It trades about 0.17 of its potential returns per unit of risk. TreeHouse Foods is currently generating about -0.05 per unit of risk. If you would invest 843.00 in Austevoll Seafood ASA on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Austevoll Seafood ASA or generate 8.42% 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. TreeHouse Foods
Performance |
| Timeline |
| Austevoll Seafood ASA |
| TreeHouse Foods |
Austevoll Seafood and TreeHouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and TreeHouse Foods
The main advantage of trading using opposite Austevoll Seafood and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, TreeHouse Foods 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 TreeHouse Foods will offset losses from the drop in TreeHouse Foods' long position.| Austevoll Seafood vs. Easy Software AG | Austevoll Seafood vs. FORWARD AIR P | Austevoll Seafood vs. SEALED AIR | Austevoll Seafood vs. BioNTech SE |
| TreeHouse Foods vs. Air Transport Services | TreeHouse Foods vs. Jacquet Metal Service | TreeHouse Foods vs. National Retail Properties | TreeHouse Foods vs. SIDETRADE EO 1 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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