Correlation Between Smithson Investment and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Smithson Investment and Austevoll Seafood 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 Smithson Investment and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smithson Investment Trust and Austevoll Seafood ASA, you can compare the effects of market volatilities on Smithson Investment and Austevoll Seafood 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 Smithson Investment with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smithson Investment and Austevoll Seafood.
Diversification Opportunities for Smithson Investment and Austevoll Seafood
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smithson and Austevoll is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Smithson Investment Trust and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and Smithson Investment 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 Smithson Investment Trust are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Smithson Investment i.e., Smithson Investment and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Smithson Investment and Austevoll Seafood
Assuming the 90 days trading horizon Smithson Investment Trust is expected to generate 0.97 times more return on investment than Austevoll Seafood. However, Smithson Investment Trust is 1.03 times less risky than Austevoll Seafood. It trades about 0.09 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about -0.08 per unit of risk. If you would invest 149,600 in Smithson Investment Trust on August 30, 2025 and sell it today you would earn a total of 9,800 from holding Smithson Investment Trust or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smithson Investment Trust vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Smithson Investment Trust |
| Austevoll Seafood ASA |
Smithson Investment and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smithson Investment and Austevoll Seafood
The main advantage of trading using opposite Smithson Investment and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smithson Investment position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Smithson Investment vs. Verizon Communications | Smithson Investment vs. Supermarket Income REIT | Smithson Investment vs. Roadside Real Estate | Smithson Investment vs. Sligro Food Group |
| Austevoll Seafood vs. AMG Advanced Metallurgical | Austevoll Seafood vs. Royal Bank of | Austevoll Seafood vs. Sparebanken Vest | Austevoll Seafood vs. AfriTin Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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