Correlation Between St Galler and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both St Galler 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 St Galler and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Grieg Seafood, you can compare the effects of market volatilities on St Galler 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 St Galler with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Grieg Seafood.
Diversification Opportunities for St Galler and Grieg Seafood
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Grieg is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and St Galler 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 St Galler Kantonalbank 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 St Galler i.e., St Galler and Grieg Seafood go up and down completely randomly.
Pair Corralation between St Galler and Grieg Seafood
Assuming the 90 days trading horizon St Galler is expected to generate 1.17 times less return on investment than Grieg Seafood. But when comparing it to its historical volatility, St Galler Kantonalbank is 2.67 times less risky than Grieg Seafood. It trades about 0.16 of its potential returns per unit of risk. Grieg Seafood is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,835 in Grieg Seafood on October 18, 2024 and sell it today you would earn a total of 615.00 from holding Grieg Seafood or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Grieg Seafood
Performance |
| Timeline |
| St Galler Kantonalbank |
| Grieg Seafood |
St Galler and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Grieg Seafood
The main advantage of trading using opposite St Galler and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler 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.| St Galler vs. Walmart | St Galler vs. BYD Co | St Galler vs. Volkswagen AG | St Galler vs. Volkswagen AG Non Vtg |
| Grieg Seafood vs. St Galler Kantonalbank | Grieg Seafood vs. Synchrony Financial | Grieg Seafood vs. National Beverage Corp | Grieg Seafood vs. FinecoBank SpA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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