Correlation Between Austevoll Seafood and MetLife
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood and MetLife 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 MetLife 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 MetLife, you can compare the effects of market volatilities on Austevoll Seafood and MetLife 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 MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and MetLife.
Diversification Opportunities for Austevoll Seafood and MetLife
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austevoll and MetLife is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife 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 MetLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and MetLife go up and down completely randomly.
Pair Corralation between Austevoll Seafood and MetLife
Assuming the 90 days horizon Austevoll Seafood is expected to generate 1.76 times less return on investment than MetLife. In addition to that, Austevoll Seafood is 1.04 times more volatile than MetLife. It trades about 0.1 of its total potential returns per unit of risk. MetLife is currently generating about 0.18 per unit of volatility. If you would invest 6,828 in MetLife on September 5, 2024 and sell it today you would earn a total of 1,322 from holding MetLife or generate 19.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Austevoll Seafood ASA vs. MetLife
Performance |
Timeline |
Austevoll Seafood ASA |
MetLife |
Austevoll Seafood and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austevoll Seafood and MetLife
The main advantage of trading using opposite Austevoll Seafood and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood position performs unexpectedly, MetLife 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 MetLife will offset losses from the drop in MetLife's long position.Austevoll Seafood vs. Fevertree Drinks PLC | Austevoll Seafood vs. Ming Le Sports | Austevoll Seafood vs. THAI BEVERAGE | Austevoll Seafood vs. Thai Beverage Public |
MetLife vs. PLAY2CHILL SA ZY | MetLife vs. SENECA FOODS A | MetLife vs. KOOL2PLAY SA ZY | MetLife vs. Austevoll Seafood ASA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |