Correlation Between Austevoll Seafood and CN RAILWAY

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

Diversification Opportunities for Austevoll Seafood and CN RAILWAY

0.0

Correlation Coefficient

Austevoll Seafood  CN RAILWAY

Pay attention - limited upside

The 3 months correlation between Austevoll and 4FF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and CN RAILWAY S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN RAILWAY S 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 CN RAILWAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN RAILWAY S has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and CN RAILWAY go up and down completely randomly.

Pair Corralation between Austevoll Seafood and CN RAILWAY

If you would invest  835.00  in Austevoll Seafood ASA on October 10, 2024 and sell it today you would earn a total of  9.00  from holding Austevoll Seafood ASA or generate 1.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Austevoll Seafood ASA  vs.  CN RAILWAY S

Austevoll Seafood ASA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Austevoll Seafood ASA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Austevoll Seafood is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

CN RAILWAY S

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CN RAILWAY S has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, CN RAILWAY is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Austevoll Seafood and CN RAILWAY

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

The idea behind Austevoll Seafood ASA and CN RAILWAY S 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.