Correlation Between Grieg Seafood and Goodtech
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Goodtech 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 Goodtech 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 Goodtech, you can compare the effects of market volatilities on Grieg Seafood and Goodtech 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 Goodtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Goodtech.
Diversification Opportunities for Grieg Seafood and Goodtech
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grieg and Goodtech is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Goodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodtech 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 Goodtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodtech has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Goodtech go up and down completely randomly.
Pair Corralation between Grieg Seafood and Goodtech
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 5.75 times less return on investment than Goodtech. In addition to that, Grieg Seafood is 1.04 times more volatile than Goodtech. It trades about 0.0 of its total potential returns per unit of risk. Goodtech is currently generating about 0.02 per unit of volatility. If you would invest 789.00 in Goodtech on August 28, 2024 and sell it today you would earn a total of 111.00 from holding Goodtech or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Goodtech
Performance |
| Timeline |
| Grieg Seafood ASA |
| Goodtech |
Grieg Seafood and Goodtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Goodtech
The main advantage of trading using opposite Grieg Seafood and Goodtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Goodtech 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 Goodtech will offset losses from the drop in Goodtech'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 |
| Goodtech vs. Eidesvik Offshore ASA | Goodtech vs. Kitron ASA | Goodtech vs. Havila Shipping ASA | Goodtech vs. Elkem 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..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |