Correlation Between Aurskog Sparebank and Clean Seas
Can any of the company-specific risk be diversified away by investing in both Aurskog Sparebank and Clean Seas 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 Aurskog Sparebank and Clean Seas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurskog Sparebank and Clean Seas Seafood, you can compare the effects of market volatilities on Aurskog Sparebank and Clean Seas 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 Aurskog Sparebank with a short position of Clean Seas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurskog Sparebank and Clean Seas.
Diversification Opportunities for Aurskog Sparebank and Clean Seas
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurskog and Clean is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aurskog Sparebank and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood and Aurskog Sparebank 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 Aurskog Sparebank are associated (or correlated) with Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of Aurskog Sparebank i.e., Aurskog Sparebank and Clean Seas go up and down completely randomly.
Pair Corralation between Aurskog Sparebank and Clean Seas
Assuming the 90 days trading horizon Aurskog Sparebank is expected to generate 0.52 times more return on investment than Clean Seas. However, Aurskog Sparebank is 1.93 times less risky than Clean Seas. It trades about 0.06 of its potential returns per unit of risk. Clean Seas Seafood is currently generating about -0.18 per unit of risk. If you would invest 23,100 in Aurskog Sparebank on April 23, 2025 and sell it today you would earn a total of 685.00 from holding Aurskog Sparebank or generate 2.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aurskog Sparebank vs. Clean Seas Seafood
Performance |
Timeline |
Aurskog Sparebank |
Clean Seas Seafood |
Aurskog Sparebank and Clean Seas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurskog Sparebank and Clean Seas
The main advantage of trading using opposite Aurskog Sparebank and Clean Seas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurskog Sparebank position performs unexpectedly, Clean Seas 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 Clean Seas will offset losses from the drop in Clean Seas' long position.Aurskog Sparebank vs. Sparebank 1 Nord Norge | Aurskog Sparebank vs. DnB ASA | Aurskog Sparebank vs. Melhus Sparebank | Aurskog Sparebank vs. Holand og Setskog |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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