Correlation Between Gigante Salmon and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both Gigante Salmon and Biofish Holding 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 Gigante Salmon and Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigante Salmon AS and Biofish Holding AS, you can compare the effects of market volatilities on Gigante Salmon and Biofish Holding 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 Gigante Salmon with a short position of Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigante Salmon and Biofish Holding.
Diversification Opportunities for Gigante Salmon and Biofish Holding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gigante and Biofish is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gigante Salmon AS and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS and Gigante Salmon 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 Gigante Salmon AS are associated (or correlated) with Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of Gigante Salmon i.e., Gigante Salmon and Biofish Holding go up and down completely randomly.
Pair Corralation between Gigante Salmon and Biofish Holding
Assuming the 90 days trading horizon Gigante Salmon AS is expected to generate 1.04 times more return on investment than Biofish Holding. However, Gigante Salmon is 1.04 times more volatile than Biofish Holding AS. It trades about -0.06 of its potential returns per unit of risk. Biofish Holding AS is currently generating about -0.08 per unit of risk. If you would invest 858.00 in Gigante Salmon AS on September 14, 2024 and sell it today you would lose (42.00) from holding Gigante Salmon AS or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigante Salmon AS vs. Biofish Holding AS
Performance |
| Timeline |
| Gigante Salmon AS |
| Biofish Holding AS |
Gigante Salmon and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigante Salmon and Biofish Holding
The main advantage of trading using opposite Gigante Salmon and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigante Salmon position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| Gigante Salmon vs. Andfjord Salmon AS | Gigante Salmon vs. Salmon Evolution Holding | Gigante Salmon vs. Biofish Holding AS | Gigante Salmon vs. Nordic Aqua Partners |
| Biofish Holding vs. Hynion AS | Biofish Holding vs. Icelandic Salmon As | Biofish Holding vs. Ensurge Micropower ASA | Biofish Holding vs. Gigante Salmon AS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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