Correlation Between Austevoll Seafood and Blackstone

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

Diversification Opportunities for Austevoll Seafood and Blackstone

0.42

Correlation Coefficient

Austevoll Seafood  Blackstone

Very weak diversification

The 3 months correlation between Austevoll and Blackstone is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Blackstone go up and down completely randomly.

Pair Corralation between Austevoll Seafood and Blackstone

Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.24 times more return on investment than Blackstone. However, Austevoll Seafood is 1.24 times more volatile than Blackstone Group. It trades about 0.01 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.19 per unit of risk. If you would invest  845.00  in Austevoll Seafood ASA on October 10, 2024 and sell it today you would lose (1.00) from holding Austevoll Seafood ASA or give up 0.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.44%
Values	Daily Returns

Austevoll Seafood ASA  vs.  Blackstone Group

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.

Blackstone Group

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Blackstone reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austevoll Seafood and Blackstone

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

The idea behind Austevoll Seafood ASA and Blackstone Group 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.