Correlation Between Austevoll Seafood and Baillie Gifford

Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and Baillie Gifford 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 Baillie Gifford 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 Baillie Gifford European, you can compare the effects of market volatilities on Austevoll Seafood and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and Baillie Gifford.

Diversification Opportunities for Austevoll Seafood and Baillie Gifford

0.0

Correlation Coefficient

Austevoll Seafood  Baillie Gifford

Pay attention - limited upside

The 3 months correlation between Austevoll and Baillie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Baillie Gifford European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford European 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 Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford European has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Baillie Gifford go up and down completely randomly.

Pair Corralation between Austevoll Seafood and Baillie Gifford

If you would invest  0.00  in Baillie Gifford European on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Baillie Gifford European or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Austevoll Seafood ASA  vs.  Baillie Gifford European

Austevoll Seafood ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Austevoll Seafood ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Austevoll Seafood is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Baillie Gifford European

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baillie Gifford European has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Baillie Gifford is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Austevoll Seafood and Baillie Gifford

The main advantage of trading using opposite Austevoll Seafood and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.

The idea behind Austevoll Seafood ASA and Baillie Gifford European pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.