Correlation Between Grieg Seafood and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood 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 Grieg Seafood and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Austevoll Seafood ASA, you can compare the effects of market volatilities on Grieg Seafood 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 Grieg Seafood with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Austevoll Seafood.
Diversification Opportunities for Grieg Seafood and Austevoll Seafood
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grieg and Austevoll is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood 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 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 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 Grieg Seafood i.e., Grieg Seafood and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Grieg Seafood and Austevoll Seafood
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.61 times less return on investment than Austevoll Seafood. In addition to that, Grieg Seafood is 1.47 times more volatile than Austevoll Seafood ASA. It trades about 0.02 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.06 per unit of volatility. If you would invest 7,490 in Austevoll Seafood ASA on November 1, 2024 and sell it today you would earn a total of 3,545 from holding Austevoll Seafood ASA or generate 47.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Grieg Seafood |
| Austevoll Seafood ASA |
Grieg Seafood and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Austevoll Seafood
The main advantage of trading using opposite Grieg Seafood and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood 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.| Grieg Seafood vs. SBM Offshore NV | Grieg Seafood vs. Amedeo Air Four | Grieg Seafood vs. Cairo Communication SpA | Grieg Seafood vs. Universal Display Corp |
| Austevoll Seafood vs. Nordic Semiconductor ASA | Austevoll Seafood vs. Intermediate Capital Group | Austevoll Seafood vs. LBG Media PLC | Austevoll Seafood vs. Travel Leisure Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |