Correlation Between Grieg Seafood and Arctic Fish
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Arctic Fish 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 Arctic Fish 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 Arctic Fish Holding, you can compare the effects of market volatilities on Grieg Seafood and Arctic Fish 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 Arctic Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Arctic Fish.
Diversification Opportunities for Grieg Seafood and Arctic Fish
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grieg and Arctic is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Arctic Fish Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Fish Holding 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 Arctic Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Fish Holding has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Arctic Fish go up and down completely randomly.
Pair Corralation between Grieg Seafood and Arctic Fish
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to under-perform the Arctic Fish. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood ASA is 1.48 times less risky than Arctic Fish. The stock trades about -0.13 of its potential returns per unit of risk. The Arctic Fish Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,200 in Arctic Fish Holding on September 1, 2024 and sell it today you would lose (100.00) from holding Arctic Fish Holding or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Arctic Fish Holding
Performance |
| Timeline |
| Grieg Seafood ASA |
| Arctic Fish Holding |
Grieg Seafood and Arctic Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Arctic Fish
The main advantage of trading using opposite Grieg Seafood and Arctic Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Arctic Fish 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 Arctic Fish will offset losses from the drop in Arctic Fish'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 |
| Arctic Fish vs. Andfjord Salmon AS | Arctic Fish vs. Elkem ASA | Arctic Fish vs. Integrated Wind Solutions | Arctic Fish vs. Vow 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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