Correlation Between Grieg Seafood and Avis Budget
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Avis Budget 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 Avis Budget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Avis Budget Group, you can compare the effects of market volatilities on Grieg Seafood and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Avis Budget.
Diversification Opportunities for Grieg Seafood and Avis Budget
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grieg and Avis is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget Group 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 Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Avis Budget go up and down completely randomly.
Pair Corralation between Grieg Seafood and Avis Budget
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 0.63 times more return on investment than Avis Budget. However, Grieg Seafood is 1.59 times less risky than Avis Budget. It trades about -0.01 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.03 per unit of risk. If you would invest 7,720 in Grieg Seafood on October 7, 2024 and sell it today you would lose (1,485) from holding Grieg Seafood or give up 19.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.59% |
| Values | Daily Returns |
Grieg Seafood vs. Avis Budget Group
Performance |
| Timeline |
| Grieg Seafood |
| Avis Budget Group |
Grieg Seafood and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Avis Budget
The main advantage of trading using opposite Grieg Seafood and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| Grieg Seafood vs. Uniper SE | Grieg Seafood vs. Codex Acquisitions PLC | Grieg Seafood vs. Ikigai Ventures | Grieg Seafood vs. Heavitree Brewery |
| Avis Budget vs. Take Two Interactive Software | Avis Budget vs. DXC Technology Co | Avis Budget vs. iShares Physical Silver | Avis Budget vs. Anglesey Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |