Correlation Between Ice Fish and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both Ice Fish and SalMar ASA 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 Ice Fish and SalMar ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ice Fish Farm and SalMar ASA, you can compare the effects of market volatilities on Ice Fish and SalMar ASA 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 Ice Fish with a short position of SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Fish and SalMar ASA.
Diversification Opportunities for Ice Fish and SalMar ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ice and SalMar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ice Fish Farm and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA and Ice Fish 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 Ice Fish Farm are associated (or correlated) with SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of Ice Fish i.e., Ice Fish and SalMar ASA go up and down completely randomly.
Pair Corralation between Ice Fish and SalMar ASA
If you would invest 0.00 in Ice Fish Farm on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Ice Fish Farm or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ice Fish Farm vs. SalMar ASA
Performance |
| Timeline |
| Ice Fish Farm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| SalMar ASA |
Ice Fish and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Fish and SalMar ASA
The main advantage of trading using opposite Ice Fish and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Fish position performs unexpectedly, SalMar ASA 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.The idea behind Ice Fish Farm and SalMar ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SalMar ASA vs. Grieg Seafood ASA | SalMar ASA vs. Austevoll Seafood ASA | SalMar ASA vs. Mowi ASA | SalMar ASA vs. Pf Bakkafrost |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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