Correlation Between Pf Bakkafrost and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both Pf Bakkafrost and Lery 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 Pf Bakkafrost and Lery Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pf Bakkafrost and Lery Seafood Group, you can compare the effects of market volatilities on Pf Bakkafrost and Lery 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 Pf Bakkafrost with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pf Bakkafrost and Lery Seafood.
Diversification Opportunities for Pf Bakkafrost and Lery Seafood
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BAKKA and Lery is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pf Bakkafrost and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and Pf Bakkafrost 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 Pf Bakkafrost are associated (or correlated) with Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Pf Bakkafrost i.e., Pf Bakkafrost and Lery Seafood go up and down completely randomly.
Pair Corralation between Pf Bakkafrost and Lery Seafood
Assuming the 90 days trading horizon Pf Bakkafrost is expected to generate 0.86 times more return on investment than Lery Seafood. However, Pf Bakkafrost is 1.16 times less risky than Lery Seafood. It trades about 0.06 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.05 per unit of risk. If you would invest 58,800 in Pf Bakkafrost on August 25, 2024 and sell it today you would earn a total of 7,000 from holding Pf Bakkafrost or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pf Bakkafrost vs. Lery Seafood Group
Performance |
| Timeline |
| Pf Bakkafrost |
| Lery Seafood Group |
Pf Bakkafrost and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pf Bakkafrost and Lery Seafood
The main advantage of trading using opposite Pf Bakkafrost and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pf Bakkafrost position performs unexpectedly, Lery 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.| Pf Bakkafrost vs. SalMar ASA | Pf Bakkafrost vs. Mowi ASA | Pf Bakkafrost vs. Lery Seafood Group | Pf Bakkafrost vs. Grieg Seafood ASA |
| Lery Seafood vs. Grieg Seafood ASA | Lery Seafood vs. SalMar ASA | Lery Seafood vs. Pf Bakkafrost | Lery 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |