Correlation Between Austevoll Seafood and Webster Financial
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Webster Financial 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 Webster Financial 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 Webster Financial, you can compare the effects of market volatilities on Austevoll Seafood and Webster Financial 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 Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Webster Financial.
Diversification Opportunities for Austevoll Seafood and Webster Financial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austevoll and Webster is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial 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 Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Webster Financial go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Webster Financial
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 2.26 times more return on investment than Webster Financial. However, Austevoll Seafood is 2.26 times more volatile than Webster Financial. It trades about 0.05 of its potential returns per unit of risk. Webster Financial is currently generating about 0.04 per unit of risk. If you would invest 361.00 in Austevoll Seafood ASA on September 3, 2024 and sell it today you would earn a total of 494.00 from holding Austevoll Seafood ASA or generate 136.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. Webster Financial
Performance |
| Timeline |
| Austevoll Seafood ASA |
| Webster Financial |
Austevoll Seafood and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and Webster Financial
The main advantage of trading using opposite Austevoll Seafood and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Webster Financial 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| Austevoll Seafood vs. Infrastrutture Wireless Italiane | Austevoll Seafood vs. Tower One Wireless | Austevoll Seafood vs. 24SEVENOFFICE GROUP AB | Austevoll Seafood vs. MINCO SILVER |
| Webster Financial vs. US Bancorp | Webster Financial vs. The PNC Financial | Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Regions Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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