Correlation Between Grieg Seafood and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Oakley Capital 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 Oakley Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Oakley Capital Investments, you can compare the effects of market volatilities on Grieg Seafood and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Oakley Capital.
Diversification Opportunities for Grieg Seafood and Oakley Capital
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grieg and Oakley is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Oakley Capital go up and down completely randomly.
Pair Corralation between Grieg Seafood and Oakley Capital
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Oakley Capital. In addition to that, Grieg Seafood is 1.93 times more volatile than Oakley Capital Investments. It trades about -0.01 of its total potential returns per unit of risk. Oakley Capital Investments is currently generating about 0.02 per unit of volatility. If you would invest 45,731 in Oakley Capital Investments on August 31, 2024 and sell it today you would earn a total of 2,319 from holding Oakley Capital Investments or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Grieg Seafood vs. Oakley Capital Investments
Performance |
| Timeline |
| Grieg Seafood |
| Oakley Capital Inves |
Grieg Seafood and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Oakley Capital
The main advantage of trading using opposite Grieg Seafood and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Grieg Seafood vs. Catalyst Media Group | Grieg Seafood vs. Virgin Wines UK | Grieg Seafood vs. Naked Wines plc | Grieg Seafood vs. Hollywood Bowl Group |
| Oakley Capital vs. Bisichi Mining PLC | Oakley Capital vs. Panther Metals PLC | Oakley Capital vs. Zanaga Iron Ore | Oakley Capital vs. Ross Stores |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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