Correlation Between Lery Seafood and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and SWISS WATER 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 Lery Seafood and SWISS WATER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on Lery Seafood and SWISS WATER 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 Lery Seafood with a short position of SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and SWISS WATER.
Diversification Opportunities for Lery Seafood and SWISS WATER
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lery and SWISS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE and Lery 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 Lery Seafood Group are associated (or correlated) with SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of Lery Seafood i.e., Lery Seafood and SWISS WATER go up and down completely randomly.
Pair Corralation between Lery Seafood and SWISS WATER
Assuming the 90 days trading horizon Lery Seafood Group is expected to under-perform the SWISS WATER. But the stock apears to be less risky and, when comparing its historical volatility, Lery Seafood Group is 1.93 times less risky than SWISS WATER. The stock trades about -0.21 of its potential returns per unit of risk. The SWISS WATER DECAFFCOFFEE is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 272.00 in SWISS WATER DECAFFCOFFEE on September 24, 2024 and sell it today you would lose (18.00) from holding SWISS WATER DECAFFCOFFEE or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| Lery Seafood Group |
| SWISS WATER DECAFFCOFFEE |
Lery Seafood and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and SWISS WATER
The main advantage of trading using opposite Lery Seafood and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| Lery Seafood vs. Grieg Seafood ASA | Lery Seafood vs. SalMar ASA | Lery Seafood vs. Pf Bakkafrost | Lery Seafood vs. Mowi ASA |
| SWISS WATER vs. Mowi ASA | SWISS WATER vs. LEROY SEAFOOD GRUNSPADR | SWISS WATER vs. Lery Seafood Group | SWISS WATER vs. Nisshin Seifun Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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