Correlation Between Austevoll Seafood and Odfjell Technology
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Odfjell Technology 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 Odfjell Technology 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 Odfjell Technology, you can compare the effects of market volatilities on Austevoll Seafood and Odfjell Technology 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 Odfjell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Odfjell Technology.
Diversification Opportunities for Austevoll Seafood and Odfjell Technology
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austevoll and Odfjell is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Odfjell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odfjell Technology 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 Odfjell Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odfjell Technology has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Odfjell Technology go up and down completely randomly.
Pair Corralation between Austevoll Seafood and Odfjell Technology
Assuming the 90 days trading horizon Austevoll Seafood ASA is expected to generate 0.59 times more return on investment than Odfjell Technology. However, Austevoll Seafood ASA is 1.69 times less risky than Odfjell Technology. It trades about 0.03 of its potential returns per unit of risk. Odfjell Technology is currently generating about -0.04 per unit of risk. If you would invest 9,500 in Austevoll Seafood ASA on September 26, 2024 and sell it today you would earn a total of 160.00 from holding Austevoll Seafood ASA or generate 1.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Austevoll Seafood ASA vs. Odfjell Technology
Performance |
Timeline |
Austevoll Seafood ASA |
Odfjell Technology |
Austevoll Seafood and Odfjell Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austevoll Seafood and Odfjell Technology
The main advantage of trading using opposite Austevoll Seafood and Odfjell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Odfjell Technology 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 Odfjell Technology will offset losses from the drop in Odfjell Technology's long position.Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
Odfjell Technology vs. Borr Drilling | Odfjell Technology vs. Odfjell Drilling | Odfjell Technology vs. Shelf Drilling | Odfjell Technology vs. Deep Value Driller |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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