Correlation Between Grieg Seafood and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Hilton 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 Hilton 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 Hilton Food Group, you can compare the effects of market volatilities on Grieg Seafood and Hilton 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Hilton Food.
Diversification Opportunities for Grieg Seafood and Hilton Food
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grieg and Hilton is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Hilton Food go up and down completely randomly.
Pair Corralation between Grieg Seafood and Hilton Food
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Hilton Food. In addition to that, Grieg Seafood is 1.88 times more volatile than Hilton Food Group. It trades about -0.01 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.07 per unit of volatility. If you would invest 74,446 in Hilton Food Group on August 29, 2024 and sell it today you would earn a total of 14,954 from holding Hilton Food Group or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Hilton Food Group
Performance |
| Timeline |
| Grieg Seafood |
| Hilton Food Group |
Grieg Seafood and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Hilton Food
The main advantage of trading using opposite Grieg Seafood and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Hilton 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Grieg Seafood vs. Lendinvest PLC | Grieg Seafood vs. Neometals | Grieg Seafood vs. Coor Service Management | Grieg Seafood vs. Albion Technology General |
| Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Toyota Motor Corp | Hilton Food vs. MOL Hungarian Oil |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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