Correlation Between Atlantic Sapphire and Techstep ASA
Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire and Techstep ASA 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 Atlantic Sapphire and Techstep ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Sapphire As and Techstep ASA, you can compare the effects of market volatilities on Atlantic Sapphire and Techstep ASA 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 Atlantic Sapphire with a short position of Techstep ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Techstep ASA.
Diversification Opportunities for Atlantic Sapphire and Techstep ASA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlantic and Techstep is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire As and Techstep ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techstep ASA and Atlantic Sapphire 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 Atlantic Sapphire As are associated (or correlated) with Techstep ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techstep ASA has no effect on the direction of Atlantic Sapphire i.e., Atlantic Sapphire and Techstep ASA go up and down completely randomly.
Pair Corralation between Atlantic Sapphire and Techstep ASA
Assuming the 90 days trading horizon Atlantic Sapphire As is expected to generate 4.13 times more return on investment than Techstep ASA. However, Atlantic Sapphire is 4.13 times more volatile than Techstep ASA. It trades about 0.12 of its potential returns per unit of risk. Techstep ASA is currently generating about 0.06 per unit of risk. If you would invest 540.00 in Atlantic Sapphire As on June 4, 2025 and sell it today you would earn a total of 395.00 from holding Atlantic Sapphire As or generate 73.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Sapphire As vs. Techstep ASA
Performance |
| Timeline |
| Atlantic Sapphire |
| Techstep ASA |
Atlantic Sapphire and Techstep ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Sapphire and Techstep ASA
The main advantage of trading using opposite Atlantic Sapphire and Techstep ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire position performs unexpectedly, Techstep ASA 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 Techstep ASA will offset losses from the drop in Techstep ASA's long position.| Atlantic Sapphire vs. Grieg Seafood ASA | Atlantic Sapphire vs. Mowi ASA | Atlantic Sapphire vs. SalMar ASA | Atlantic Sapphire vs. Pf Bakkafrost |
| Techstep ASA vs. Pexip Holding ASA | Techstep ASA vs. Enea AB | Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Zalaris 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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