Correlation Between Atlantic Sapphire and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Atlantic Sapphire 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 Atlantic Sapphire and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Sapphire As and Grieg Seafood ASA, you can compare the effects of market volatilities on Atlantic Sapphire 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 Atlantic Sapphire with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Sapphire and Grieg Seafood.
Diversification Opportunities for Atlantic Sapphire and Grieg Seafood
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantic and Grieg is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Sapphire As and Grieg Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood ASA and Atlantic Sapphire 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 Atlantic Sapphire As 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 ASA has no effect on the direction of Atlantic Sapphire i.e., Atlantic Sapphire and Grieg Seafood go up and down completely randomly.
Pair Corralation between Atlantic Sapphire and Grieg Seafood
Assuming the 90 days trading horizon Atlantic Sapphire As is expected to under-perform the Grieg Seafood. In addition to that, Atlantic Sapphire is 1.32 times more volatile than Grieg Seafood ASA. It trades about -0.35 of its total potential returns per unit of risk. Grieg Seafood ASA is currently generating about -0.03 per unit of volatility. If you would invest 6,590 in Grieg Seafood ASA on August 25, 2024 and sell it today you would lose (110.00) from holding Grieg Seafood ASA or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Sapphire As vs. Grieg Seafood ASA
Performance |
| Timeline |
| Atlantic Sapphire |
| Grieg Seafood ASA |
Atlantic Sapphire and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Sapphire and Grieg Seafood
The main advantage of trading using opposite Atlantic Sapphire and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Sapphire 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.| Atlantic Sapphire vs. Grieg Seafood ASA | Atlantic Sapphire vs. Mowi ASA | Atlantic Sapphire vs. SalMar ASA | Atlantic Sapphire vs. Pf Bakkafrost |
| Grieg Seafood vs. Lery Seafood Group | Grieg Seafood vs. SalMar ASA | Grieg Seafood vs. Austevoll Seafood ASA | Grieg Seafood vs. Mowi ASA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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