Correlation Between Anglo Asian and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Anglo Asian 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 Anglo Asian and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo Asian Mining and Grieg Seafood, you can compare the effects of market volatilities on Anglo Asian 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 Anglo Asian with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and Grieg Seafood.
Diversification Opportunities for Anglo Asian and Grieg Seafood
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anglo and Grieg is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Anglo Asian 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 Anglo Asian Mining 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 Anglo Asian i.e., Anglo Asian and Grieg Seafood go up and down completely randomly.
Pair Corralation between Anglo Asian and Grieg Seafood
Assuming the 90 days trading horizon Anglo Asian Mining is expected to generate 0.95 times more return on investment than Grieg Seafood. However, Anglo Asian Mining is 1.05 times less risky than Grieg Seafood. It trades about -0.02 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.23 per unit of risk. If you would invest 10,500 in Anglo Asian Mining on October 12, 2024 and sell it today you would lose (100.00) from holding Anglo Asian Mining or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Asian Mining vs. Grieg Seafood
Performance |
| Timeline |
| Anglo Asian Mining |
| Grieg Seafood |
Anglo Asian and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and Grieg Seafood
The main advantage of trading using opposite Anglo Asian and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian 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.| Anglo Asian vs. Zoom Video Communications | Anglo Asian vs. BW Offshore | Anglo Asian vs. Nordic Semiconductor ASA | Anglo Asian vs. Darden Restaurants |
| Grieg Seafood vs. Seche Environnement SA | Grieg Seafood vs. Hochschild Mining plc | Grieg Seafood vs. Anglo Asian Mining | Grieg Seafood vs. Air Products Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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