Correlation Between Southern Copper and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Southern Copper and Grieg Seafood 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 Southern Copper and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Copper Corp and Grieg Seafood, you can compare the effects of market volatilities on Southern Copper and Grieg Seafood 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 Southern Copper with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and Grieg Seafood.
Diversification Opportunities for Southern Copper and Grieg Seafood
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southern and Grieg is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Southern Copper 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 Southern Copper Corp are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Southern Copper i.e., Southern Copper and Grieg Seafood go up and down completely randomly.
Pair Corralation between Southern Copper and Grieg Seafood
Assuming the 90 days trading horizon Southern Copper Corp is expected to generate 3.27 times more return on investment than Grieg Seafood. However, Southern Copper is 3.27 times more volatile than Grieg Seafood. It trades about 0.04 of its potential returns per unit of risk. Grieg Seafood is currently generating about 0.0 per unit of risk. If you would invest 6,136 in Southern Copper Corp on September 4, 2024 and sell it today you would earn a total of 3,791 from holding Southern Copper Corp or generate 61.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Southern Copper Corp vs. Grieg Seafood
Performance |
| Timeline |
| Southern Copper Corp |
| Grieg Seafood |
Southern Copper and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and Grieg Seafood
The main advantage of trading using opposite Southern Copper and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, Grieg Seafood 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Southern Copper vs. Endeavour Mining Corp | Southern Copper vs. AfriTin Mining | Southern Copper vs. GoldMining | Southern Copper vs. Atalaya Mining |
| Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Hyundai Motor | Grieg Seafood 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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