Correlation Between SalMar ASA and AutoStore Holdings

Can any of the company-specific risk be diversified away by investing in both SalMar ASA and AutoStore Holdings 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 SalMar ASA and AutoStore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SalMar ASA and AutoStore Holdings, you can compare the effects of market volatilities on SalMar ASA and AutoStore Holdings 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 SalMar ASA with a short position of AutoStore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and AutoStore Holdings.

Diversification Opportunities for SalMar ASA and AutoStore Holdings

-0.24

Correlation Coefficient

SalMar ASA  AutoStore Holdings

Very good diversification

The 3 months correlation between SalMar and AutoStore is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and AutoStore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoStore Holdings and SalMar ASA 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 SalMar ASA are associated (or correlated) with AutoStore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoStore Holdings has no effect on the direction of SalMar ASA i.e., SalMar ASA and AutoStore Holdings go up and down completely randomly.

Pair Corralation between SalMar ASA and AutoStore Holdings

Assuming the 90 days trading horizon SalMar ASA is expected to under-perform the AutoStore Holdings. But the stock apears to be less risky and, when comparing its historical volatility, SalMar ASA is 1.8 times less risky than AutoStore Holdings. The stock trades about -0.07 of its potential returns per unit of risk. The AutoStore Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  506.00  in AutoStore Holdings on April 25, 2025 and sell it today you would earn a total of  236.00  from holding AutoStore Holdings or generate 46.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SalMar ASA  vs.  AutoStore Holdings

SalMar ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days SalMar ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

AutoStore Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, AutoStore Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SalMar ASA and AutoStore Holdings

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

The idea behind SalMar ASA and AutoStore Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.