Correlation Between Austevoll Seafood and REINET INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and REINET INVESTMENTS 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 REINET INVESTMENTS 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 REINET INVESTMENTS SCA, you can compare the effects of market volatilities on Austevoll Seafood and REINET INVESTMENTS 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 REINET INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and REINET INVESTMENTS.
Diversification Opportunities for Austevoll Seafood and REINET INVESTMENTS
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and REINET is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and REINET INVESTMENTS SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REINET INVESTMENTS SCA 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 REINET INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REINET INVESTMENTS SCA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and REINET INVESTMENTS go up and down completely randomly.
Pair Corralation between Austevoll Seafood and REINET INVESTMENTS
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.91 times more return on investment than REINET INVESTMENTS. However, Austevoll Seafood is 1.91 times more volatile than REINET INVESTMENTS SCA. It trades about 0.05 of its potential returns per unit of risk. REINET INVESTMENTS SCA is currently generating about 0.04 per unit of risk. If you would invest 361.00 in Austevoll Seafood ASA on September 24, 2024 and sell it today you would earn a total of 461.00 from holding Austevoll Seafood ASA or generate 127.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Austevoll Seafood ASA vs. REINET INVESTMENTS SCA
Performance |
Timeline |
Austevoll Seafood ASA |
REINET INVESTMENTS SCA |
Austevoll Seafood and REINET INVESTMENTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austevoll Seafood and REINET INVESTMENTS
The main advantage of trading using opposite Austevoll Seafood and REINET INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, REINET INVESTMENTS 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 REINET INVESTMENTS will offset losses from the drop in REINET INVESTMENTS's long position.Austevoll Seafood vs. VITEC SOFTWARE GROUP | Austevoll Seafood vs. Alfa Financial Software | Austevoll Seafood vs. Ares Management Corp | Austevoll Seafood vs. ASURE SOFTWARE |
REINET INVESTMENTS vs. Vastned Retail NV | REINET INVESTMENTS vs. SENECA FOODS A | REINET INVESTMENTS vs. Austevoll Seafood ASA | REINET INVESTMENTS vs. RETAIL FOOD GROUP |
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 Correlations module to find global opportunities by holding instruments from different markets.
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