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
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grieg and Alternus is 0.44. 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 under-perform the Alternus Energy. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood ASA is 3.92 times less risky than Alternus Energy. The stock trades about 0.0 of its potential returns per unit of risk. The Alternus Energy Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Alternus Energy Group on December 12, 2024 and sell it today you would lose (469.00) from holding Alternus Energy Group or give up 93.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| 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.| Grieg Seafood vs. Lery Seafood Group | ||
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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