Correlation Between Grieg Seafood and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Medical Properties 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 Medical Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Medical Properties Trust, you can compare the effects of market volatilities on Grieg Seafood and Medical Properties 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 Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Medical Properties.
Diversification Opportunities for Grieg Seafood and Medical Properties
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grieg and Medical is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust 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 Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Medical Properties go up and down completely randomly.
Pair Corralation between Grieg Seafood and Medical Properties
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Medical Properties. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood is 1.3 times less risky than Medical Properties. The stock trades about -0.07 of its potential returns per unit of risk. The Medical Properties Trust is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 405.00 in Medical Properties Trust on October 11, 2024 and sell it today you would lose (12.00) from holding Medical Properties Trust or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grieg Seafood vs. Medical Properties Trust
Performance |
| Timeline |
| Grieg Seafood |
| Medical Properties Trust |
Grieg Seafood and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Medical Properties
The main advantage of trading using opposite Grieg Seafood and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Medical Properties 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 Medical Properties will offset losses from the drop in Medical Properties' 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 |
| Medical Properties vs. Livermore Investments Group | Medical Properties vs. Grieg Seafood | Medical Properties vs. Austevoll Seafood ASA | Medical Properties vs. Lords Grp Trading |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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