Correlation Between Leroy Seafood and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both Leroy Seafood and Anglo Eastern 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 Leroy Seafood and Anglo Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leroy Seafood Group and Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on Leroy Seafood and Anglo Eastern 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 Leroy Seafood with a short position of Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leroy Seafood and Anglo Eastern.
Diversification Opportunities for Leroy Seafood and Anglo Eastern
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leroy and Anglo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Leroy Seafood Group and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta and Leroy 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 Leroy Seafood Group are associated (or correlated) with Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of Leroy Seafood i.e., Leroy Seafood and Anglo Eastern go up and down completely randomly.
Pair Corralation between Leroy Seafood and Anglo Eastern
Assuming the 90 days trading horizon Leroy Seafood Group is expected to generate 0.9 times more return on investment than Anglo Eastern. However, Leroy Seafood Group is 1.11 times less risky than Anglo Eastern. It trades about 0.07 of its potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about -0.09 per unit of risk. If you would invest 5,103 in Leroy Seafood Group on September 12, 2024 and sell it today you would earn a total of 127.00 from holding Leroy Seafood Group or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leroy Seafood Group vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| Leroy Seafood Group |
| Anglo Eastern Planta |
Leroy Seafood and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leroy Seafood and Anglo Eastern
The main advantage of trading using opposite Leroy Seafood and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leroy Seafood position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| Leroy Seafood vs. Hong Kong Land | Leroy Seafood vs. Neometals | Leroy Seafood vs. Coor Service Management | Leroy Seafood vs. Fidelity Sustainable USD |
| Anglo Eastern vs. McEwen Mining | Anglo Eastern vs. Vitec Software Group | Anglo Eastern vs. Litigation Capital Management | Anglo Eastern vs. Axway Software SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |