Correlation Between Grieg Seafood and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Proximar Seafood 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 Proximar Seafood 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 Proximar Seafood AS, you can compare the effects of market volatilities on Grieg Seafood and Proximar Seafood 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 Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Proximar Seafood.
Diversification Opportunities for Grieg Seafood and Proximar Seafood
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grieg and Proximar is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood 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 Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Proximar Seafood go up and down completely randomly.
Pair Corralation between Grieg Seafood and Proximar Seafood
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 2.92 times less return on investment than Proximar Seafood. But when comparing it to its historical volatility, Grieg Seafood ASA is 1.48 times less risky than Proximar Seafood. It trades about 0.0 of its potential returns per unit of risk. Proximar Seafood AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Proximar Seafood AS on August 28, 2024 and sell it today you would lose (69.00) from holding Proximar Seafood AS or give up 16.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Proximar Seafood AS
Performance |
| Timeline |
| Grieg Seafood ASA |
| Proximar Seafood |
Grieg Seafood and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Proximar Seafood
The main advantage of trading using opposite Grieg Seafood and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Proximar Seafood 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 Proximar Seafood will offset losses from the drop in Proximar Seafood'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 |
| Proximar Seafood vs. Nidaros Sparebank | Proximar Seafood vs. Aasen Sparebank | Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Gaming Innovation Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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