Correlation Between Grieg Seafood and Bell Food
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Bell Food 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 Bell Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Bell Food Group, you can compare the effects of market volatilities on Grieg Seafood and Bell Food 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 Bell Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Bell Food.
Diversification Opportunities for Grieg Seafood and Bell Food
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grieg and Bell is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Bell Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Food 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 Bell Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Food Group has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Bell Food go up and down completely randomly.
Pair Corralation between Grieg Seafood and Bell Food
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 2.11 times more return on investment than Bell Food. However, Grieg Seafood is 2.11 times more volatile than Bell Food Group. It trades about 0.02 of its potential returns per unit of risk. Bell Food Group is currently generating about 0.01 per unit of risk. If you would invest 6,249 in Grieg Seafood on August 25, 2024 and sell it today you would earn a total of 289.00 from holding Grieg Seafood or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Grieg Seafood vs. Bell Food Group
Performance |
| Timeline |
| Grieg Seafood |
| Bell Food Group |
Grieg Seafood and Bell Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Bell Food
The main advantage of trading using opposite Grieg Seafood and Bell Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Bell Food 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 Bell Food will offset losses from the drop in Bell Food's long position.| Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Hyundai Motor | Grieg Seafood vs. Toyota Motor Corp |
| Bell Food vs. Samsung Electronics Co | Bell Food vs. Samsung Electronics Co | Bell Food vs. Hyundai Motor | Bell Food vs. Toyota Motor Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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