Correlation Between Lery Seafood and ASSOC BR
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and ASSOC BR 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 ASSOC BR 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 ASSOC BR FOODS, you can compare the effects of market volatilities on Lery Seafood and ASSOC BR 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 ASSOC BR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and ASSOC BR.
Diversification Opportunities for Lery Seafood and ASSOC BR
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lery and ASSOC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and ASSOC BR FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSOC BR FOODS 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 ASSOC BR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSOC BR FOODS has no effect on the direction of Lery Seafood i.e., Lery Seafood and ASSOC BR go up and down completely randomly.
Pair Corralation between Lery Seafood and ASSOC BR
Assuming the 90 days trading horizon Lery Seafood Group is expected to generate 1.23 times more return on investment than ASSOC BR. However, Lery Seafood is 1.23 times more volatile than ASSOC BR FOODS. It trades about 0.05 of its potential returns per unit of risk. ASSOC BR FOODS is currently generating about 0.0 per unit of risk. If you would invest 4,007 in Lery Seafood Group on September 23, 2024 and sell it today you would earn a total of 857.00 from holding Lery Seafood Group or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.54% |
| Values | Daily Returns |
Lery Seafood Group vs. ASSOC BR FOODS
Performance |
| Timeline |
| Lery Seafood Group |
| ASSOC BR FOODS |
Lery Seafood and ASSOC BR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and ASSOC BR
The main advantage of trading using opposite Lery Seafood and ASSOC BR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, ASSOC BR 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 ASSOC BR will offset losses from the drop in ASSOC BR's long position.| Lery Seafood vs. SalMar ASA | Lery Seafood vs. Grieg Seafood ASA | Lery Seafood vs. Austevoll Seafood ASA | Lery Seafood vs. Mowi ASA |
| ASSOC BR vs. Mowi ASA | ASSOC BR vs. LEROY SEAFOOD GRUNSPADR | ASSOC BR vs. Lery Seafood Group | ASSOC BR 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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