Correlation Between Grieg Seafood and Alternus Energy
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Alternus Energy 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 Alternus Energy 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 Alternus Energy Group, you can compare the effects of market volatilities on Grieg Seafood and Alternus Energy 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 Alternus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Alternus Energy.
Diversification Opportunities for Grieg Seafood and Alternus Energy
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Alternus is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Alternus Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternus Energy Group 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 Alternus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternus Energy Group has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Alternus Energy go up and down completely randomly.
Pair Corralation between Grieg Seafood and Alternus Energy
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to generate 0.26 times more return on investment than Alternus Energy. However, Grieg Seafood ASA is 3.87 times less risky than Alternus Energy. It trades about 0.02 of its potential returns per unit of risk. Alternus Energy Group is currently generating about -0.07 per unit of risk. If you would invest 6,294 in Grieg Seafood ASA on September 14, 2024 and sell it today you would earn a total of 291.00 from holding Grieg Seafood ASA or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Alternus Energy Group
Performance |
| Timeline |
| Grieg Seafood ASA |
| Alternus Energy Group |
Grieg Seafood and Alternus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Alternus Energy
The main advantage of trading using opposite Grieg Seafood and Alternus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Alternus Energy 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 Alternus Energy will offset losses from the drop in Alternus Energy's long position.The idea behind Grieg Seafood ASA and Alternus Energy 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.| Alternus Energy vs. Shelf Drilling | Alternus Energy vs. Nordhealth AS | Alternus Energy vs. Grieg Seafood ASA | Alternus Energy vs. Grong Sparebank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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