Correlation Between Austevoll Seafood and BRUNELLO C

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

Diversification Opportunities for Austevoll Seafood and BRUNELLO C

-0.04

Correlation Coefficient

Austevoll Seafood  BRUNELLO C

Good diversification

The 3 months correlation between Austevoll and BRUNELLO is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and BRUNELLO C SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRUNELLO C SPA 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 BRUNELLO C. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRUNELLO C SPA has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and BRUNELLO C go up and down completely randomly.

Pair Corralation between Austevoll Seafood and BRUNELLO C

Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 3.38 times more return on investment than BRUNELLO C. However, Austevoll Seafood is 3.38 times more volatile than BRUNELLO C SPA. It trades about 0.05 of its potential returns per unit of risk. BRUNELLO C SPA is currently generating about 0.06 per unit of risk. If you would invest  371.00  in Austevoll Seafood ASA on October 10, 2024 and sell it today you would earn a total of  472.00  from holding Austevoll Seafood ASA or generate 127.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Austevoll Seafood ASA  vs.  BRUNELLO C SPA

Austevoll Seafood ASA

Risk-Adjusted Performance

1 of 100

Insignificant

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.

BRUNELLO C SPA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BRUNELLO C SPA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, BRUNELLO C unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austevoll Seafood and BRUNELLO C

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

The idea behind Austevoll Seafood ASA and BRUNELLO C SPA 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.