Correlation Between Gigante Salmon and HAV Group
Can any of the company-specific risk be diversified away by investing in both Gigante Salmon and HAV Group 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 HAV Group 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 HAV Group ASA, you can compare the effects of market volatilities on Gigante Salmon and HAV Group 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 HAV Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigante Salmon and HAV Group.
Diversification Opportunities for Gigante Salmon and HAV Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gigante and HAV is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gigante Salmon AS and HAV Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAV Group ASA 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 HAV Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAV Group ASA has no effect on the direction of Gigante Salmon i.e., Gigante Salmon and HAV Group go up and down completely randomly.
Pair Corralation between Gigante Salmon and HAV Group
Assuming the 90 days trading horizon Gigante Salmon AS is expected to generate 0.58 times more return on investment than HAV Group. However, Gigante Salmon AS is 1.71 times less risky than HAV Group. It trades about -0.08 of its potential returns per unit of risk. HAV Group ASA is currently generating about -0.14 per unit of risk. If you would invest 830.00 in Gigante Salmon AS on November 27, 2024 and sell it today you would lose (18.00) from holding Gigante Salmon AS or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigante Salmon AS vs. HAV Group ASA
Performance |
| Timeline |
| Gigante Salmon AS |
| HAV Group ASA |
Gigante Salmon and HAV Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigante Salmon and HAV Group
The main advantage of trading using opposite Gigante Salmon and HAV Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigante Salmon position performs unexpectedly, HAV Group 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 HAV Group will offset losses from the drop in HAV Group'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 |
| HAV Group vs. Sogn Sparebank | HAV Group vs. SpareBank 1 stlandet | HAV Group vs. Sparebank 1 SMN | HAV Group vs. Pareto Bank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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