Correlation Between Grieg Seafood and Systemair
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Systemair 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 Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Systemair AB, you can compare the effects of market volatilities on Grieg Seafood and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Systemair.
Diversification Opportunities for Grieg Seafood and Systemair
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Systemair is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Systemair go up and down completely randomly.
Pair Corralation between Grieg Seafood and Systemair
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.66 times more return on investment than Systemair. However, Grieg Seafood is 1.66 times more volatile than Systemair AB. It trades about -0.07 of its potential returns per unit of risk. Systemair AB is currently generating about -0.31 per unit of risk. If you would invest 6,370 in Grieg Seafood on October 11, 2024 and sell it today you would lose (247.00) from holding Grieg Seafood or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Systemair AB
Performance |
| Timeline |
| Grieg Seafood |
| Systemair AB |
Grieg Seafood and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Systemair
The main advantage of trading using opposite Grieg Seafood and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Grieg Seafood vs. Seche Environnement SA | Grieg Seafood vs. Hochschild Mining plc | Grieg Seafood vs. Anglo Asian Mining | Grieg Seafood vs. Air Products Chemicals |
| Systemair vs. InterContinental Hotels Group | Systemair vs. Science in Sport | Systemair vs. Grieg Seafood | Systemair vs. Tyson Foods Cl |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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