Correlation Between Austevoll Seafood and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and WillScot Mobile 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 WillScot Mobile 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 WillScot Mobile Mini, you can compare the effects of market volatilities on Austevoll Seafood and WillScot Mobile 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 WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and WillScot Mobile.
Diversification Opportunities for Austevoll Seafood and WillScot Mobile
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and WillScot is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and WillScot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WillScot Mobile Mini 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 WillScot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WillScot Mobile Mini has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and WillScot Mobile go up and down completely randomly.
Pair Corralation between Austevoll Seafood and WillScot Mobile
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.39 times more return on investment than WillScot Mobile. However, Austevoll Seafood ASA is 2.59 times less risky than WillScot Mobile. It trades about 0.13 of its potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.02 per unit of risk. If you would invest 824.00 in Austevoll Seafood ASA on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Austevoll Seafood ASA or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. WillScot Mobile Mini
Performance |
| Timeline |
| Austevoll Seafood ASA |
| WillScot Mobile Mini |
Austevoll Seafood and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and WillScot Mobile
The main advantage of trading using opposite Austevoll Seafood and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, WillScot Mobile 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 WillScot Mobile will offset losses from the drop in WillScot Mobile's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Superior Plus Corp | WillScot Mobile vs. NMI Holdings | WillScot Mobile vs. Origin Agritech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |