Correlation Between Grieg Seafood and Public Storage
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Public Storage 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 Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Public Storage, you can compare the effects of market volatilities on Grieg Seafood and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Public Storage.
Diversification Opportunities for Grieg Seafood and Public Storage
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grieg and Public is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Public Storage go up and down completely randomly.
Pair Corralation between Grieg Seafood and Public Storage
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 2.33 times less return on investment than Public Storage. In addition to that, Grieg Seafood is 1.7 times more volatile than Public Storage. It trades about 0.02 of its total potential returns per unit of risk. Public Storage is currently generating about 0.08 per unit of volatility. If you would invest 24,768 in Public Storage on September 14, 2024 and sell it today you would earn a total of 7,245 from holding Public Storage or generate 29.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Grieg Seafood vs. Public Storage
Performance |
| Timeline |
| Grieg Seafood |
| Public Storage |
Grieg Seafood and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Public Storage
The main advantage of trading using opposite Grieg Seafood and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Grieg Seafood vs. Intermediate Capital Group | Grieg Seafood vs. British American Tobacco | Grieg Seafood vs. JD Sports Fashion | Grieg Seafood vs. Infrastrutture Wireless Italiane |
| Public Storage vs. Hilton Food Group | Public Storage vs. Ebro Foods | Public Storage vs. Grieg Seafood | Public Storage vs. Edita Food Industries |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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