Correlation Between AUSTEVOLL SEAFOOD and CSL
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD and CSL 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 CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and CSL LTD SPONADR, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and CSL.
Diversification Opportunities for AUSTEVOLL SEAFOOD and CSL
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AUSTEVOLL and CSL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and CSL go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and CSL
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 0.92 times more return on investment than CSL. However, AUSTEVOLL SEAFOOD is 1.08 times less risky than CSL. It trades about -0.08 of its potential returns per unit of risk. CSL LTD SPONADR is currently generating about -0.16 per unit of risk. If you would invest 935.00 in AUSTEVOLL SEAFOOD on December 1, 2024 and sell it today you would lose (28.00) from holding AUSTEVOLL SEAFOOD or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. CSL LTD SPONADR
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| CSL LTD SPONADR |
AUSTEVOLL SEAFOOD and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and CSL
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| AUSTEVOLL SEAFOOD vs. Scottish Mortgage Investment | AUSTEVOLL SEAFOOD vs. PLAYMATES TOYS | AUSTEVOLL SEAFOOD vs. PennantPark Investment | AUSTEVOLL SEAFOOD vs. BRAGG GAMING GRP |
| CSL vs. United Internet AG | CSL vs. Khiron Life Sciences | CSL vs. MAANSHAN IRON H | CSL vs. Casio Computer CoLtd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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