Correlation Between Grieg Seafood and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Kinnevik Investment 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 Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Kinnevik Investment AB, you can compare the effects of market volatilities on Grieg Seafood and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Kinnevik Investment.
Diversification Opportunities for Grieg Seafood and Kinnevik Investment
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Kinnevik is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Grieg Seafood and Kinnevik Investment
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Kinnevik Investment. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood is 1.25 times less risky than Kinnevik Investment. The stock trades about -0.07 of its potential returns per unit of risk. The Kinnevik Investment AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,361 in Kinnevik Investment AB on August 26, 2024 and sell it today you would earn a total of 237.00 from holding Kinnevik Investment AB or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Kinnevik Investment AB
Performance |
| Timeline |
| Grieg Seafood |
| Kinnevik Investment |
Grieg Seafood and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Kinnevik Investment
The main advantage of trading using opposite Grieg Seafood and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment'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 |
| Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Samsung Electronics Co | Kinnevik Investment vs. Hyundai Motor | Kinnevik Investment 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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