Correlation Between Austevoll Seafood and MSCI

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

Diversification Opportunities for Austevoll Seafood and MSCI

0.49

Correlation Coefficient

Austevoll Seafood  MSCI

Very weak diversification

The 3 months correlation between Austevoll and MSCI is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and MSCI go up and down completely randomly.

Pair Corralation between Austevoll Seafood and MSCI

Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.29 times more return on investment than MSCI. However, Austevoll Seafood is 1.29 times more volatile than MSCI Inc. It trades about 0.28 of its potential returns per unit of risk. MSCI Inc is currently generating about 0.13 per unit of risk. If you would invest  805.00  in Austevoll Seafood ASA on October 23, 2024 and sell it today you would earn a total of  75.00  from holding Austevoll Seafood ASA or generate 9.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.12%
Values	Daily Returns

Austevoll Seafood ASA  vs.  MSCI Inc

Austevoll Seafood ASA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Austevoll Seafood ASA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Austevoll Seafood may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MSCI Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MSCI may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Austevoll Seafood and MSCI

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

The idea behind Austevoll Seafood ASA and MSCI Inc 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 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..