Correlation Between Austevoll Seafood and Datadog

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

Diversification Opportunities for Austevoll Seafood and Datadog

0.68

Correlation Coefficient

Austevoll Seafood  Datadog

Poor diversification

The 3 months correlation between Austevoll and Datadog is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA and Datadog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datadog 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 Datadog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datadog has no effect on the direction of Austevoll Seafood i.e., Austevoll Seafood and Datadog go up and down completely randomly.

Pair Corralation between Austevoll Seafood and Datadog

Assuming the 90 days horizon Austevoll Seafood is expected to generate 21.51 times less return on investment than Datadog. But when comparing it to its historical volatility, Austevoll Seafood ASA is 1.59 times less risky than Datadog. It trades about 0.02 of its potential returns per unit of risk. Datadog is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  8,165  in Datadog on April 23, 2025 and sell it today you would earn a total of  4,149  from holding Datadog or generate 50.81% 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.  Datadog

Austevoll Seafood ASA

Risk-Adjusted Performance

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Datadog

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Datadog are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Datadog reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austevoll Seafood and Datadog

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

The idea behind Austevoll Seafood ASA and Datadog 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.