Correlation Between AUSTEVOLL SEAFOOD and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD and VIVA WINE 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 VIVA WINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and VIVA WINE GROUP, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and VIVA WINE.
Diversification Opportunities for AUSTEVOLL SEAFOOD and VIVA WINE
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AUSTEVOLL and VIVA is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and VIVA WINE go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and VIVA WINE
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 5.52 times less return on investment than VIVA WINE. In addition to that, AUSTEVOLL SEAFOOD is 1.13 times more volatile than VIVA WINE GROUP. It trades about 0.04 of its total potential returns per unit of risk. VIVA WINE GROUP is currently generating about 0.22 per unit of volatility. If you would invest 331.00 in VIVA WINE GROUP on November 27, 2024 and sell it today you would earn a total of 24.00 from holding VIVA WINE GROUP or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. VIVA WINE GROUP
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| VIVA WINE GROUP |
AUSTEVOLL SEAFOOD and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and VIVA WINE
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| AUSTEVOLL SEAFOOD vs. KAUFMAN ET BROAD | AUSTEVOLL SEAFOOD vs. EVS Broadcast Equipment | AUSTEVOLL SEAFOOD vs. Cairo Communication SpA | AUSTEVOLL SEAFOOD vs. ScanSource |
| VIVA WINE vs. Yanzhou Coal Mining | VIVA WINE vs. BioNTech SE | VIVA WINE vs. Allegheny Technologies Incorporated | VIVA WINE vs. Globex Mining Enterprises |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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