Correlation Between Spire Healthcare and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Spire Healthcare and Austevoll Seafood 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 Spire Healthcare and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Healthcare Group and Austevoll Seafood ASA, you can compare the effects of market volatilities on Spire Healthcare and Austevoll Seafood 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 Spire Healthcare with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and Austevoll Seafood.
Diversification Opportunities for Spire Healthcare and Austevoll Seafood
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spire and Austevoll is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and Spire Healthcare 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 Spire Healthcare Group are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Spire Healthcare i.e., Spire Healthcare and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Spire Healthcare and Austevoll Seafood
Assuming the 90 days trading horizon Spire Healthcare is expected to generate 7.23 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Spire Healthcare Group is 1.33 times less risky than Austevoll Seafood. It trades about 0.0 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,277 in Austevoll Seafood ASA on September 24, 2024 and sell it today you would earn a total of 1,311 from holding Austevoll Seafood ASA or generate 15.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Spire Healthcare Group vs. Austevoll Seafood ASA
Performance |
Timeline |
Spire Healthcare |
Austevoll Seafood ASA |
Spire Healthcare and Austevoll Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spire Healthcare and Austevoll Seafood
The main advantage of trading using opposite Spire Healthcare and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Healthcare position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.Spire Healthcare vs. Tungsten West PLC | Spire Healthcare vs. Argo Group Limited | Spire Healthcare vs. Hardide PLC | Spire Healthcare vs. Gfinity PLC |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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