Correlation Between Helgeland Sparebank and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both Helgeland Sparebank and Lery 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 Helgeland Sparebank and Lery Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helgeland Sparebank and Lery Seafood Group, you can compare the effects of market volatilities on Helgeland Sparebank and Lery 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 Helgeland Sparebank with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helgeland Sparebank and Lery Seafood.
Diversification Opportunities for Helgeland Sparebank and Lery Seafood
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helgeland and Lery is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Helgeland Sparebank and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and Helgeland Sparebank 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 Helgeland Sparebank are associated (or correlated) with Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Helgeland Sparebank i.e., Helgeland Sparebank and Lery Seafood go up and down completely randomly.
Pair Corralation between Helgeland Sparebank and Lery Seafood
Assuming the 90 days trading horizon Helgeland Sparebank is expected to under-perform the Lery Seafood. But the stock apears to be less risky and, when comparing its historical volatility, Helgeland Sparebank is 1.13 times less risky than Lery Seafood. The stock trades about -0.08 of its potential returns per unit of risk. The Lery Seafood Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,050 in Lery Seafood Group on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Lery Seafood Group or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helgeland Sparebank vs. Lery Seafood Group
Performance |
| Timeline |
| Helgeland Sparebank |
| Lery Seafood Group |
Helgeland Sparebank and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helgeland Sparebank and Lery Seafood
The main advantage of trading using opposite Helgeland Sparebank and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helgeland Sparebank position performs unexpectedly, Lery 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.| Helgeland Sparebank vs. DnB ASA | Helgeland Sparebank vs. Gjensidige Forsikring ASA | Helgeland Sparebank vs. Orkla ASA | Helgeland Sparebank vs. Telenor ASA |
| Lery Seafood vs. Grieg Seafood ASA | Lery Seafood vs. SalMar ASA | Lery Seafood vs. Pf Bakkafrost | Lery Seafood vs. Mowi 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |