Correlation Between Hong Kong and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Hong Kong 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 Hong Kong and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and Grieg Seafood, you can compare the effects of market volatilities on Hong Kong 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 Hong Kong with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Grieg Seafood.
Diversification Opportunities for Hong Kong and Grieg Seafood
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Grieg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Hong Kong 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 Hong Kong Land 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 Hong Kong i.e., Hong Kong and Grieg Seafood go up and down completely randomly.
Pair Corralation between Hong Kong and Grieg Seafood
Assuming the 90 days trading horizon Hong Kong is expected to generate 1.29 times less return on investment than Grieg Seafood. But when comparing it to its historical volatility, Hong Kong Land is 15.53 times less risky than Grieg Seafood. It trades about 0.08 of its potential returns per unit of risk. Grieg Seafood is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,037 in Grieg Seafood on September 13, 2024 and sell it today you would lose (377.00) from holding Grieg Seafood or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hong Kong Land vs. Grieg Seafood
Performance |
| Timeline |
| Hong Kong Land |
| Grieg Seafood |
Hong Kong and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Grieg Seafood
The main advantage of trading using opposite Hong Kong and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong 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.| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
| Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Samsung Electronics Co | Grieg Seafood vs. Hyundai Motor | Grieg Seafood vs. Reliance Industries Ltd |
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 CEOs Directory module to screen CEOs from public companies around the world.
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