Correlation Between Grieg Seafood and Teco 2030
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Teco 2030 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 Teco 2030 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 Teco 2030 Asa, you can compare the effects of market volatilities on Grieg Seafood and Teco 2030 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 Teco 2030. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Teco 2030.
Diversification Opportunities for Grieg Seafood and Teco 2030
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grieg and Teco is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and Teco 2030 Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teco 2030 Asa 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 Teco 2030. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teco 2030 Asa has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Teco 2030 go up and down completely randomly.
Pair Corralation between Grieg Seafood and Teco 2030
Assuming the 90 days trading horizon Grieg Seafood ASA is expected to generate 0.11 times more return on investment than Teco 2030. However, Grieg Seafood ASA is 9.16 times less risky than Teco 2030. It trades about -0.03 of its potential returns per unit of risk. Teco 2030 Asa is currently generating about -0.1 per unit of risk. If you would invest 6,590 in Grieg Seafood ASA on August 25, 2024 and sell it today you would lose (110.00) from holding Grieg Seafood ASA or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood ASA vs. Teco 2030 Asa
Performance |
| Timeline |
| Grieg Seafood ASA |
| Teco 2030 Asa |
Grieg Seafood and Teco 2030 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Teco 2030
The main advantage of trading using opposite Grieg Seafood and Teco 2030 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Teco 2030 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 Teco 2030 will offset losses from the drop in Teco 2030'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 |
| Teco 2030 vs. PCI Biotech Holding | Teco 2030 vs. Awilco Drilling PLC | Teco 2030 vs. Norwegian Air Shuttle | Teco 2030 vs. Grieg Seafood 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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