Correlation Between Grieg Seafood and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Lendinvest PLC 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 Lendinvest PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Lendinvest PLC, you can compare the effects of market volatilities on Grieg Seafood and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Lendinvest PLC.
Diversification Opportunities for Grieg Seafood and Lendinvest PLC
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Lendinvest is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Grieg Seafood and Lendinvest PLC
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Lendinvest PLC. In addition to that, Grieg Seafood is 2.94 times more volatile than Lendinvest PLC. It trades about -0.19 of its total potential returns per unit of risk. Lendinvest PLC is currently generating about 0.36 per unit of volatility. If you would invest 2,350 in Lendinvest PLC on November 27, 2024 and sell it today you would earn a total of 400.00 from holding Lendinvest PLC or generate 17.02% 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. Lendinvest PLC
Performance |
| Timeline |
| Grieg Seafood |
| Lendinvest PLC |
Grieg Seafood and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Lendinvest PLC
The main advantage of trading using opposite Grieg Seafood and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| Grieg Seafood vs. PPHE Hotel Group | Grieg Seafood vs. United Airlines Holdings | Grieg Seafood vs. Ion Beam Applications | Grieg Seafood vs. Melia Hotels |
| Lendinvest PLC vs. Livermore Investments Group | Lendinvest PLC vs. Lloyds Banking Group | Lendinvest PLC vs. Liechtensteinische Landesbank AG | Lendinvest PLC vs. National Beverage 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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