Correlation Between Austevoll Seafood and MyHealthChecked Plc

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

Diversification Opportunities for Austevoll Seafood and MyHealthChecked Plc

0.88

Correlation Coefficient

Austevoll Seafood  MyHealthChecked Plc

Very poor diversification

The 3 months correlation between Austevoll and MyHealthChecked is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc 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 MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Austevoll Seafood and MyHealthChecked Plc

Assuming the 90 days trading horizon Austevoll Seafood is expected to generate 3.51 times less return on investment than MyHealthChecked Plc. But when comparing it to its historical volatility, Austevoll Seafood ASA is 2.86 times less risky than MyHealthChecked Plc. It trades about 0.07 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,250  in MyHealthChecked Plc on December 27, 2024 and sell it today you would earn a total of  225.00  from holding MyHealthChecked Plc or generate 18.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Austevoll Seafood ASA  vs.  MyHealthChecked Plc

Austevoll Seafood ASA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Austevoll Seafood ASA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Austevoll Seafood is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

MyHealthChecked Plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MyHealthChecked Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, MyHealthChecked Plc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austevoll Seafood and MyHealthChecked Plc

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

The idea behind Austevoll Seafood ASA and MyHealthChecked Plc 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.