Correlation Between Grieg Seafood and Aasen Sparebank
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Aasen Sparebank 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 Grieg Seafood and Aasen Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood ASA and Aasen Sparebank, you can compare the effects of market volatilities on Grieg Seafood and Aasen Sparebank 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 Grieg Seafood with a short position of Aasen Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Aasen Sparebank.
Diversification Opportunities for Grieg Seafood and Aasen Sparebank
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grieg and Aasen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Aasen Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aasen Sparebank and Grieg Seafood 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 Grieg Seafood ASA are associated (or correlated) with Aasen Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aasen Sparebank has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Aasen Sparebank go up and down completely randomly.
Pair Corralation between Grieg Seafood and Aasen Sparebank
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to generate 2.52 times more return on investment than Aasen Sparebank. However, Grieg Seafood is 2.52 times more volatile than Aasen Sparebank. It trades about 0.14 of its potential returns per unit of risk. Aasen Sparebank is currently generating about 0.07 per unit of risk. If you would invest 4,850 in Grieg Seafood ASA on September 2, 2024 and sell it today you would earn a total of 1,230 from holding Grieg Seafood ASA or generate 25.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Aasen Sparebank
Performance |
| Timeline |
| Grieg Seafood ASA |
| Aasen Sparebank |
Grieg Seafood and Aasen Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Aasen Sparebank
The main advantage of trading using opposite Grieg Seafood and Aasen Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Aasen Sparebank 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 Aasen Sparebank will offset losses from the drop in Aasen Sparebank's long position.| Grieg Seafood vs. Lery Seafood Group | Grieg Seafood vs. SalMar ASA | Grieg Seafood vs. Austevoll Seafood ASA | Grieg Seafood vs. Mowi ASA |
| Aasen Sparebank vs. Sparebank 1 SMN | Aasen Sparebank vs. Sparebank 1 Nord Norge | Aasen Sparebank vs. Sparebanken Vest | Aasen Sparebank vs. Sparebank 1 Ostfold |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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