Correlation Between AUSTEVOLL SEAFOOD and BankUnited
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD and BankUnited 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 BankUnited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and BankUnited, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD and BankUnited 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 BankUnited. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and BankUnited.
Diversification Opportunities for AUSTEVOLL SEAFOOD and BankUnited
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUSTEVOLL and BankUnited is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and BankUnited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankUnited 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 are associated (or correlated) with BankUnited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankUnited has no effect on the direction of AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and BankUnited go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and BankUnited
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 1.93 times more return on investment than BankUnited. However, AUSTEVOLL SEAFOOD is 1.93 times more volatile than BankUnited. It trades about 0.05 of its potential returns per unit of risk. BankUnited is currently generating about 0.03 per unit of risk. If you would invest 362.00 in AUSTEVOLL SEAFOOD on September 3, 2024 and sell it today you would earn a total of 500.00 from holding AUSTEVOLL SEAFOOD or generate 138.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. BankUnited
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| BankUnited |
AUSTEVOLL SEAFOOD and BankUnited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and BankUnited
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and BankUnited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD position performs unexpectedly, BankUnited 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 BankUnited will offset losses from the drop in BankUnited's long position.| AUSTEVOLL SEAFOOD vs. TOTAL GABON | AUSTEVOLL SEAFOOD vs. Walgreens Boots Alliance | AUSTEVOLL SEAFOOD vs. Peak Resources Limited |
| BankUnited vs. US Bancorp | BankUnited vs. The PNC Financial | BankUnited vs. Fifth Third Bancorp | BankUnited 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |