Correlation Between Mowi ASA and BRASICIA BRASDPROPADR

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

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

Diversification Opportunities for Mowi ASA and BRASICIA BRASDPROPADR

0.0

Correlation Coefficient

Mowi ASA  BRASICIA BRASDPROPADR

Pay attention - limited upside

The 3 months correlation between Mowi and BRASICIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mowi ASA and BRASICIA BRASDPROPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRASICIA BRASDPROPADR and Mowi 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 Mowi ASA are associated (or correlated) with BRASICIA BRASDPROPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRASICIA BRASDPROPADR has no effect on the direction of Mowi ASA i.e., Mowi ASA and BRASICIA BRASDPROPADR go up and down completely randomly.

Pair Corralation between Mowi ASA and BRASICIA BRASDPROPADR

If you would invest  1,438  in Mowi ASA on February 19, 2024 and sell it today you would earn a total of  253.00  from holding Mowi ASA or generate 17.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mowi ASA  vs.  BRASICIA BRASDPROPADR

Mowi ASA

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mowi ASA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mowi ASA reported solid returns over the last few months and may actually be approaching a breakup point.

BRASICIA BRASDPROPADR

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days BRASICIA BRASDPROPADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, BRASICIA BRASDPROPADR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mowi ASA and BRASICIA BRASDPROPADR

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

The idea behind Mowi ASA and BRASICIA BRASDPROPADR 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.