Correlation Between Grieg Seafood and Sea1 Offshore
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Sea1 Offshore 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 Sea1 Offshore 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 Sea1 Offshore, you can compare the effects of market volatilities on Grieg Seafood and Sea1 Offshore 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 Sea1 Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Sea1 Offshore.
Diversification Opportunities for Grieg Seafood and Sea1 Offshore
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grieg and Sea1 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Sea1 Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea1 Offshore 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 Sea1 Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea1 Offshore has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Sea1 Offshore go up and down completely randomly.
Pair Corralation between Grieg Seafood and Sea1 Offshore
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 8.75 times less return on investment than Sea1 Offshore. But when comparing it to its historical volatility, Grieg Seafood ASA is 1.21 times less risky than Sea1 Offshore. It trades about 0.01 of its potential returns per unit of risk. Sea1 Offshore is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Sea1 Offshore on August 28, 2024 and sell it today you would earn a total of 1,944 from holding Sea1 Offshore or generate 197.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Sea1 Offshore
Performance |
| Timeline |
| Grieg Seafood ASA |
| Sea1 Offshore |
Grieg Seafood and Sea1 Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Sea1 Offshore
The main advantage of trading using opposite Grieg Seafood and Sea1 Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Sea1 Offshore 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 Sea1 Offshore will offset losses from the drop in Sea1 Offshore'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 |
| Sea1 Offshore vs. Equinor ASA | Sea1 Offshore vs. DnB ASA | Sea1 Offshore vs. Aker BP ASA | Sea1 Offshore vs. Telenor 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |