Correlation Between AcadeMedia and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both AcadeMedia 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 AcadeMedia and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcadeMedia AB and Grieg Seafood, you can compare the effects of market volatilities on AcadeMedia 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 AcadeMedia with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcadeMedia and Grieg Seafood.
Diversification Opportunities for AcadeMedia and Grieg Seafood
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AcadeMedia and Grieg is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AcadeMedia AB and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and AcadeMedia 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 AcadeMedia AB 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 AcadeMedia i.e., AcadeMedia and Grieg Seafood go up and down completely randomly.
Pair Corralation between AcadeMedia and Grieg Seafood
Assuming the 90 days trading horizon AcadeMedia AB is expected to generate 0.62 times more return on investment than Grieg Seafood. However, AcadeMedia AB is 1.63 times less risky than Grieg Seafood. It trades about 0.15 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.11 per unit of risk. If you would invest 6,470 in AcadeMedia AB on October 10, 2024 and sell it today you would earn a total of 245.00 from holding AcadeMedia AB or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AcadeMedia AB vs. Grieg Seafood
Performance |
| Timeline |
| AcadeMedia AB |
| Grieg Seafood |
AcadeMedia and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcadeMedia and Grieg Seafood
The main advantage of trading using opposite AcadeMedia and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcadeMedia 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.| AcadeMedia vs. Ecclesiastical Insurance Office | AcadeMedia vs. Atalaya Mining | AcadeMedia vs. Scandinavian Tobacco Group | AcadeMedia vs. MTI Wireless Edge |
| Grieg Seafood vs. Kaufman Et Broad | Grieg Seafood vs. Aptitude Software Group | Grieg Seafood vs. Universal Music Group | Grieg Seafood vs. Gaztransport et Technigaz |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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