Correlation Between Check Point and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Check Point 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 Check Point and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Grieg Seafood, you can compare the effects of market volatilities on Check Point 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 Check Point with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Grieg Seafood.
Diversification Opportunities for Check Point and Grieg Seafood
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Check and Grieg is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Check Point 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 Check Point Software 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 Check Point i.e., Check Point and Grieg Seafood go up and down completely randomly.
Pair Corralation between Check Point and Grieg Seafood
Assuming the 90 days trading horizon Check Point Software is expected to generate 1.13 times more return on investment than Grieg Seafood. However, Check Point is 1.13 times more volatile than Grieg Seafood. It trades about -0.18 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.23 per unit of risk. If you would invest 20,824 in Check Point Software on August 29, 2024 and sell it today you would lose (2,755) from holding Check Point Software or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Point Software vs. Grieg Seafood
Performance |
| Timeline |
| Check Point Software |
| Grieg Seafood |
Check Point and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Grieg Seafood
The main advantage of trading using opposite Check Point and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point 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.| Check Point vs. Toyota Motor Corp | Check Point vs. OTP Bank Nyrt | Check Point vs. Cognizant Technology Solutions | Check Point vs. Lendinvest PLC |
| Grieg Seafood vs. Lendinvest PLC | Grieg Seafood vs. Neometals | Grieg Seafood vs. Coor Service Management | Grieg Seafood vs. Albion Technology General |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |