Correlation Between Grieg Seafood and Napatech
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Napatech 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 Napatech 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 Napatech AS, you can compare the effects of market volatilities on Grieg Seafood and Napatech 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 Napatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Napatech.
Diversification Opportunities for Grieg Seafood and Napatech
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grieg and Napatech is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Napatech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Napatech 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 Napatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Napatech AS has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Napatech go up and down completely randomly.
Pair Corralation between Grieg Seafood and Napatech
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 17.49 times less return on investment than Napatech. But when comparing it to its historical volatility, Grieg Seafood ASA is 1.42 times less risky than Napatech. It trades about 0.0 of its potential returns per unit of risk. Napatech AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Napatech AS on August 28, 2024 and sell it today you would earn a total of 910.00 from holding Napatech AS or generate 67.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Napatech AS
Performance |
| Timeline |
| Grieg Seafood ASA |
| Napatech AS |
Grieg Seafood and Napatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Napatech
The main advantage of trading using opposite Grieg Seafood and Napatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Napatech 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 Napatech will offset losses from the drop in Napatech'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 |
| Napatech vs. Idex ASA | Napatech vs. Next Biometrics Group | Napatech vs. Polight ASA | Napatech vs. Kitron 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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