Correlation Between Austevoll Seafood and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on Austevoll Seafood and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and AUSTEVOLL SEAFOOD.
Diversification Opportunities for Austevoll Seafood and AUSTEVOLL SEAFOOD
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and AUSTEVOLL is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between Austevoll Seafood and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.14 times more return on investment than AUSTEVOLL SEAFOOD. However, Austevoll Seafood is 1.14 times more volatile than AUSTEVOLL SEAFOOD. It trades about 0.12 of its potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.13 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 40.00 from holding Austevoll Seafood ASA or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| Austevoll Seafood ASA |
| AUSTEVOLL SEAFOOD |
Austevoll Seafood and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite Austevoll Seafood and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech |
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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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