Correlation Between Austevoll Seafood and WILLIS LEASE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and WILLIS LEASE 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 WILLIS LEASE 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 WILLIS LEASE FIN, you can compare the effects of market volatilities on Austevoll Seafood and WILLIS LEASE 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 WILLIS LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and WILLIS LEASE.
Diversification Opportunities for Austevoll Seafood and WILLIS LEASE
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and WILLIS is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and WILLIS LEASE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIS LEASE FIN 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 WILLIS LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIS LEASE FIN has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and WILLIS LEASE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and WILLIS LEASE
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.33 times less return on investment than WILLIS LEASE. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.62 times less risky than WILLIS LEASE. It trades about 0.05 of its potential returns per unit of risk. WILLIS LEASE FIN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 18,300 in WILLIS LEASE FIN on October 19, 2024 and sell it today you would earn a total of 600.00 from holding WILLIS LEASE FIN or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. WILLIS LEASE FIN
Performance |
| Timeline |
| Austevoll Seafood ASA |
| WILLIS LEASE FIN |
Austevoll Seafood and WILLIS LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and WILLIS LEASE
The main advantage of trading using opposite Austevoll Seafood and WILLIS LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, WILLIS LEASE 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 WILLIS LEASE will offset losses from the drop in WILLIS LEASE's long position.| Austevoll Seafood vs. Geely Automobile Holdings | Austevoll Seafood vs. New Residential Investment | Austevoll Seafood vs. MOBILE FACTORY INC | Austevoll Seafood vs. Singapore Telecommunications Limited |
| WILLIS LEASE vs. FIRST SHIP LEASE | WILLIS LEASE vs. Salesforce | WILLIS LEASE vs. CANON MARKETING JP | WILLIS LEASE vs. National Retail Properties |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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