Correlation Between Grieg Seafood and Andfjord Salmon
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Andfjord Salmon 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 Andfjord Salmon 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 Andfjord Salmon AS, you can compare the effects of market volatilities on Grieg Seafood and Andfjord Salmon 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 Andfjord Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Andfjord Salmon.
Diversification Opportunities for Grieg Seafood and Andfjord Salmon
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grieg and Andfjord is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Andfjord Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andfjord Salmon AS 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 Andfjord Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andfjord Salmon AS has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Andfjord Salmon go up and down completely randomly.
Pair Corralation between Grieg Seafood and Andfjord Salmon
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to under-perform the Andfjord Salmon. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood ASA is 1.02 times less risky than Andfjord Salmon. The stock trades about -0.27 of its potential returns per unit of risk. The Andfjord Salmon AS is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,260 in Andfjord Salmon AS on August 29, 2024 and sell it today you would earn a total of 720.00 from holding Andfjord Salmon AS or generate 22.09% 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. Andfjord Salmon AS
Performance |
| Timeline |
| Grieg Seafood ASA |
| Andfjord Salmon AS |
Grieg Seafood and Andfjord Salmon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Andfjord Salmon
The main advantage of trading using opposite Grieg Seafood and Andfjord Salmon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Andfjord Salmon 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 Andfjord Salmon will offset losses from the drop in Andfjord Salmon'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 |
| Andfjord Salmon vs. Salmon Evolution Holding | Andfjord Salmon vs. Atlantic Sapphire As | Andfjord Salmon vs. Nordic Aqua Partners | Andfjord Salmon vs. Grieg Seafood 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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