Correlation Between Mowi ASA and SD Standard
Can any of the company-specific risk be diversified away by investing in both Mowi ASA and SD Standard 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 Mowi ASA and SD Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mowi ASA and SD Standard Drilling, you can compare the effects of market volatilities on Mowi ASA and SD Standard 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 Mowi ASA with a short position of SD Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mowi ASA and SD Standard.
Diversification Opportunities for Mowi ASA and SD Standard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mowi and SDSD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and SD Standard Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SD Standard Drilling and Mowi ASA 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 Mowi ASA are associated (or correlated) with SD Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SD Standard Drilling has no effect on the direction of Mowi ASA i.e., Mowi ASA and SD Standard go up and down completely randomly.
Pair Corralation between Mowi ASA and SD Standard
Assuming the 90 days trading horizon Mowi ASA is expected to generate 1.54 times more return on investment than SD Standard. However, Mowi ASA is 1.54 times more volatile than SD Standard Drilling. It trades about 0.08 of its potential returns per unit of risk. SD Standard Drilling is currently generating about 0.0 per unit of risk. If you would invest 19,825 in Mowi ASA on December 1, 2024 and sell it today you would earn a total of 1,115 from holding Mowi ASA or generate 5.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mowi ASA vs. SD Standard Drilling
Performance |
Timeline |
Mowi ASA |
SD Standard Drilling |
Mowi ASA and SD Standard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mowi ASA and SD Standard
The main advantage of trading using opposite Mowi ASA and SD Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mowi ASA position performs unexpectedly, SD Standard 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 SD Standard will offset losses from the drop in SD Standard's long position.Mowi ASA vs. SalMar ASA | Mowi ASA vs. Lery Seafood Group | Mowi ASA vs. Pf Bakkafrost | Mowi ASA vs. Grieg Seafood ASA |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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