Correlation Between Grieg Seafood and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Samsung Electronics Co, you can compare the effects of market volatilities on Grieg Seafood and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Samsung Electronics.
Diversification Opportunities for Grieg Seafood and Samsung Electronics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grieg and Samsung is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Samsung Electronics go up and down completely randomly.
Pair Corralation between Grieg Seafood and Samsung Electronics
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.31 times more return on investment than Samsung Electronics. However, Grieg Seafood is 1.31 times more volatile than Samsung Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 7,697 in Grieg Seafood on November 5, 2024 and sell it today you would lose (252.00) from holding Grieg Seafood or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Samsung Electronics Co
Performance |
| Timeline |
| Grieg Seafood |
| Samsung Electronics |
Grieg Seafood and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Samsung Electronics
The main advantage of trading using opposite Grieg Seafood and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Grieg Seafood vs. Gamma Communications PLC | Grieg Seafood vs. Charter Communications Cl | Grieg Seafood vs. bet at home AG | Grieg Seafood vs. Ecclesiastical Insurance Office |
| Samsung Electronics vs. Porvair plc | Samsung Electronics vs. Norwegian Air Shuttle | Samsung Electronics vs. InterContinental Hotels Group | Samsung Electronics vs. Dalata Hotel Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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