Correlation Between Grieg Seafood and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and G5 Entertainment 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 G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and G5 Entertainment AB, you can compare the effects of market volatilities on Grieg Seafood and G5 Entertainment 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 G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and G5 Entertainment.
Diversification Opportunities for Grieg Seafood and G5 Entertainment
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grieg and 0QUS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and G5 Entertainment go up and down completely randomly.
Pair Corralation between Grieg Seafood and G5 Entertainment
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.83 times more return on investment than G5 Entertainment. However, Grieg Seafood is 1.83 times more volatile than G5 Entertainment AB. It trades about 0.24 of its potential returns per unit of risk. G5 Entertainment AB is currently generating about 0.24 per unit of risk. If you would invest 6,255 in Grieg Seafood on November 2, 2024 and sell it today you would earn a total of 1,128 from holding Grieg Seafood or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. G5 Entertainment AB
Performance |
| Timeline |
| Grieg Seafood |
| G5 Entertainment |
Grieg Seafood and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and G5 Entertainment
The main advantage of trading using opposite Grieg Seafood and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Grieg Seafood vs. New Residential Investment | Grieg Seafood vs. Edinburgh Investment Trust | Grieg Seafood vs. Mineral Financial Investments | Grieg Seafood vs. Chrysalis Investments |
| G5 Entertainment vs. Adriatic Metals | G5 Entertainment vs. Atresmedia | G5 Entertainment vs. AcadeMedia AB | G5 Entertainment vs. Eastinco Mining Exploration |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |