Correlation Between Grieg Seafood and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Surgical Science 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 Grieg Seafood and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Surgical Science Sweden, you can compare the effects of market volatilities on Grieg Seafood and Surgical Science 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 Grieg Seafood with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Surgical Science.
Diversification Opportunities for Grieg Seafood and Surgical Science
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grieg and Surgical is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Grieg 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 Grieg Seafood are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Surgical Science go up and down completely randomly.
Pair Corralation between Grieg Seafood and Surgical Science
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 0.76 times more return on investment than Surgical Science. However, Grieg Seafood is 1.32 times less risky than Surgical Science. It trades about 0.0 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about -0.02 per unit of risk. If you would invest 7,154 in Grieg Seafood on September 12, 2024 and sell it today you would lose (821.00) from holding Grieg Seafood or give up 11.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.11% |
| Values | Daily Returns |
Grieg Seafood vs. Surgical Science Sweden
Performance |
| Timeline |
| Grieg Seafood |
| Surgical Science Sweden |
Grieg Seafood and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Surgical Science
The main advantage of trading using opposite Grieg Seafood and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Grieg Seafood vs. Hong Kong Land | Grieg Seafood vs. Neometals | Grieg Seafood vs. Coor Service Management | Grieg Seafood vs. Fidelity Sustainable USD |
| Surgical Science vs. Datalogic | Surgical Science vs. Universal Display Corp | Surgical Science vs. Grieg Seafood | Surgical Science vs. Teradata Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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