Correlation Between Grieg Seafood and Huddlestock Fintech
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Huddlestock Fintech 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 Huddlestock Fintech 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 Huddlestock Fintech As, you can compare the effects of market volatilities on Grieg Seafood and Huddlestock Fintech 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 Huddlestock Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Huddlestock Fintech.
Diversification Opportunities for Grieg Seafood and Huddlestock Fintech
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grieg and Huddlestock is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Huddlestock Fintech As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huddlestock Fintech 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 Huddlestock Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huddlestock Fintech has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Huddlestock Fintech go up and down completely randomly.
Pair Corralation between Grieg Seafood and Huddlestock Fintech
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 4.8 times less return on investment than Huddlestock Fintech. But when comparing it to its historical volatility, Grieg Seafood ASA is 2.75 times less risky than Huddlestock Fintech. It trades about 0.06 of its potential returns per unit of risk. Huddlestock Fintech As is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Huddlestock Fintech As on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Huddlestock Fintech As or generate 10.87% 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. Huddlestock Fintech As
Performance |
| Timeline |
| Grieg Seafood ASA |
| Huddlestock Fintech |
Grieg Seafood and Huddlestock Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Huddlestock Fintech
The main advantage of trading using opposite Grieg Seafood and Huddlestock Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Huddlestock Fintech 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 Huddlestock Fintech will offset losses from the drop in Huddlestock Fintech's long position.The idea behind Grieg Seafood ASA and Huddlestock Fintech As 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.| Huddlestock Fintech vs. Grieg Seafood ASA | Huddlestock Fintech vs. Jaeren Sparebank | Huddlestock Fintech vs. Romerike Sparebank | Huddlestock Fintech vs. Vow Green Metals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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