Correlation Between Arctic Fish and Andfjord Salmon

Can any of the company-specific risk be diversified away by investing in both Arctic Fish and Andfjord Salmon 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 Arctic Fish and Andfjord Salmon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arctic Fish Holding and Andfjord Salmon AS, you can compare the effects of market volatilities on Arctic Fish and Andfjord Salmon 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 Arctic Fish with a short position of Andfjord Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Fish and Andfjord Salmon.

Diversification Opportunities for Arctic Fish and Andfjord Salmon

0.38

Correlation Coefficient

Arctic Fish  Andfjord Salmon

Weak diversification

The 3 months correlation between Arctic and Andfjord is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Fish Holding and Andfjord Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andfjord Salmon AS and Arctic Fish 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 Arctic Fish Holding are associated (or correlated) with Andfjord Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andfjord Salmon AS has no effect on the direction of Arctic Fish i.e., Arctic Fish and Andfjord Salmon go up and down completely randomly.

Pair Corralation between Arctic Fish and Andfjord Salmon

Assuming the 90 days trading horizon Arctic Fish Holding is expected to under-perform the Andfjord Salmon. In addition to that, Arctic Fish is 1.66 times more volatile than Andfjord Salmon AS. It trades about -0.09 of its total potential returns per unit of risk. Andfjord Salmon AS is currently generating about -0.01 per unit of volatility. If you would invest  3,270  in Andfjord Salmon AS on April 25, 2025 and sell it today you would lose (120.00) from holding Andfjord Salmon AS or give up 3.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Arctic Fish Holding  vs.  Andfjord Salmon AS

Arctic Fish Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arctic Fish Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Andfjord Salmon AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Andfjord Salmon AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Andfjord Salmon is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Arctic Fish and Andfjord Salmon

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

The idea behind Arctic Fish Holding and Andfjord Salmon AS 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.