Correlation Between Grieg Seafood and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Eidesvik Offshore 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 Eidesvik Offshore 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 Eidesvik Offshore ASA, you can compare the effects of market volatilities on Grieg Seafood and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Eidesvik Offshore.
Diversification Opportunities for Grieg Seafood and Eidesvik Offshore
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grieg and Eidesvik is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Grieg Seafood and Eidesvik Offshore
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to generate 0.8 times more return on investment than Eidesvik Offshore. However, Grieg Seafood ASA is 1.26 times less risky than Eidesvik Offshore. It trades about 0.2 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.05 per unit of risk. If you would invest 6,065 in Grieg Seafood ASA on October 21, 2024 and sell it today you would earn a total of 385.00 from holding Grieg Seafood ASA or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Grieg Seafood ASA |
| Eidesvik Offshore ASA |
Grieg Seafood and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Eidesvik Offshore
The main advantage of trading using opposite Grieg Seafood and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore'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 |
| Eidesvik Offshore vs. Solstad Offsho | Eidesvik Offshore vs. Havila Shipping ASA | Eidesvik Offshore vs. Prosafe SE | Eidesvik Offshore vs. BW Offshore |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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