Correlation Between Hardide PLC and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Hardide PLC and Grieg 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 Hardide PLC and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hardide PLC and Grieg Seafood, you can compare the effects of market volatilities on Hardide PLC and Grieg 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 Hardide PLC with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hardide PLC and Grieg Seafood.
Diversification Opportunities for Hardide PLC and Grieg Seafood
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hardide and Grieg is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hardide PLC and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Hardide PLC 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 Hardide PLC are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Hardide PLC i.e., Hardide PLC and Grieg Seafood go up and down completely randomly.
Pair Corralation between Hardide PLC and Grieg Seafood
Assuming the 90 days trading horizon Hardide PLC is expected to generate 0.94 times more return on investment than Grieg Seafood. However, Hardide PLC is 1.06 times less risky than Grieg Seafood. It trades about 0.13 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.13 per unit of risk. If you would invest 475.00 in Hardide PLC on September 2, 2024 and sell it today you would earn a total of 35.00 from holding Hardide PLC or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hardide PLC vs. Grieg Seafood
Performance |
| Timeline |
| Hardide PLC |
| Grieg Seafood |
Hardide PLC and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hardide PLC and Grieg Seafood
The main advantage of trading using opposite Hardide PLC and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hardide PLC position performs unexpectedly, Grieg 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Hardide PLC vs. Monster Beverage Corp | Hardide PLC vs. National Beverage Corp | Hardide PLC vs. Tyson Foods Cl | Hardide PLC vs. Premier Foods PLC |
| Grieg Seafood vs. Uniper SE | Grieg Seafood vs. Mulberry Group PLC | Grieg Seafood vs. London Security Plc | Grieg Seafood vs. Triad Group PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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