Correlation Between Grieg Seafood and SD Standard
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and SD Standard 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 SD Standard 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 SD Standard Drilling, you can compare the effects of market volatilities on Grieg Seafood and SD Standard 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 SD Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and SD Standard.
Diversification Opportunities for Grieg Seafood and SD Standard
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grieg and SDSD is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and SD Standard Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SD Standard Drilling 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 SD Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SD Standard Drilling has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and SD Standard go up and down completely randomly.
Pair Corralation between Grieg Seafood and SD Standard
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to under-perform the SD Standard. In addition to that, Grieg Seafood is 5.1 times more volatile than SD Standard Drilling. It trades about -0.13 of its total potential returns per unit of risk. SD Standard Drilling is currently generating about 0.05 per unit of volatility. If you would invest 170.00 in SD Standard Drilling on September 1, 2024 and sell it today you would earn a total of 1.00 from holding SD Standard Drilling or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. SD Standard Drilling
Performance |
| Timeline |
| Grieg Seafood ASA |
| SD Standard Drilling |
Grieg Seafood and SD Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and SD Standard
The main advantage of trading using opposite Grieg Seafood and SD Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, SD Standard 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 SD Standard will offset losses from the drop in SD Standard'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 |
| SD Standard vs. Odfjell Drilling | SD Standard vs. Solstad Offsho | SD Standard vs. Reach Subsea | SD Standard vs. Eidesvik Offshore 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |