Correlation Between Austevoll Seafood and AdCapital
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and AdCapital 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 AdCapital 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 AdCapital AG, you can compare the effects of market volatilities on Austevoll Seafood and AdCapital 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 AdCapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and AdCapital.
Diversification Opportunities for Austevoll Seafood and AdCapital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austevoll and AdCapital is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and AdCapital AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdCapital AG 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 AdCapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdCapital AG has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and AdCapital go up and down completely randomly.
Pair Corralation between Austevoll Seafood and AdCapital
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 0.56 times more return on investment than AdCapital. However, Austevoll Seafood ASA is 1.78 times less risky than AdCapital. It trades about 0.04 of its potential returns per unit of risk. AdCapital AG is currently generating about -0.1 per unit of risk. If you would invest 870.00 in Austevoll Seafood ASA on December 5, 2024 and sell it today you would earn a total of 30.00 from holding Austevoll Seafood ASA or generate 3.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Austevoll Seafood ASA vs. AdCapital AG
Performance |
Timeline |
Austevoll Seafood ASA |
AdCapital AG |
Austevoll Seafood and AdCapital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austevoll Seafood and AdCapital
The main advantage of trading using opposite Austevoll Seafood and AdCapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, AdCapital 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 AdCapital will offset losses from the drop in AdCapital's long position.Austevoll Seafood vs. Casio Computer CoLtd | Austevoll Seafood vs. UNIQA INSURANCE GR | Austevoll Seafood vs. Virtu Financial | Austevoll Seafood vs. JAPAN TOBACCO UNSPADR12 |
AdCapital vs. SBA Communications Corp | AdCapital vs. OFFICE DEPOT | AdCapital vs. United Internet AG | AdCapital vs. CENTURIA OFFICE REIT |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |