Correlation Between Pf Bakkafrost and Lery Seafood

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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

0.28
  Correlation Coefficient

Modest diversification

The 3 months correlation between BAKKA and Lery is 0.28. 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 7.65 times less return on investment than Lery Seafood. In addition to that, Pf Bakkafrost is 1.14 times more volatile than Lery Seafood Group. It trades about 0.06 of its total potential returns per unit of risk. Lery Seafood Group is currently generating about 0.5 per unit of volatility. If you would invest  4,920  in Lery Seafood Group on November 3, 2024 and sell it today you would earn a total of  695.00  from holding Lery Seafood Group or generate 14.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Pf Bakkafrost  vs.  Lery Seafood Group

 Performance 
       Timeline  
Pf Bakkafrost 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pf Bakkafrost has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Pf Bakkafrost is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Lery Seafood Group 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lery Seafood Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, Lery Seafood may actually be approaching a critical reversion point that can send shares even higher in March 2025.

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.
The idea behind Pf Bakkafrost and Lery Seafood Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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