Correlation Between Austevoll Seafood and SOLSTAD OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE NK, you can compare the effects of market volatilities on Austevoll Seafood and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and SOLSTAD OFFSHORE.
Diversification Opportunities for Austevoll Seafood and SOLSTAD OFFSHORE
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and SOLSTAD is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and SOLSTAD OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOLSTAD OFFSHORE has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and SOLSTAD OFFSHORE go up and down completely randomly.
Pair Corralation between Austevoll Seafood and SOLSTAD OFFSHORE
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.34 times more return on investment than SOLSTAD OFFSHORE. However, Austevoll Seafood is 1.34 times more volatile than SOLSTAD OFFSHORE NK. It trades about 0.05 of its potential returns per unit of risk. SOLSTAD OFFSHORE NK is currently generating about 0.03 per unit of risk. If you would invest 385.00 in Austevoll Seafood ASA on September 25, 2024 and sell it today you would earn a total of 437.00 from holding Austevoll Seafood ASA or generate 113.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Austevoll Seafood ASA vs. SOLSTAD OFFSHORE NK
Performance |
Timeline |
Austevoll Seafood ASA |
SOLSTAD OFFSHORE |
Austevoll Seafood and SOLSTAD OFFSHORE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austevoll Seafood and SOLSTAD OFFSHORE
The main advantage of trading using opposite Austevoll Seafood and SOLSTAD OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE will offset losses from the drop in SOLSTAD OFFSHORE's long position.Austevoll Seafood vs. Archer Daniels Midland | Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. Wilmar International Limited | Austevoll Seafood vs. MOWI ASA SPADR |
SOLSTAD OFFSHORE vs. AP Mller | SOLSTAD OFFSHORE vs. AP Mller | SOLSTAD OFFSHORE vs. ZIM Integrated Shipping | SOLSTAD OFFSHORE vs. DFDS AS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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