Correlation Between Lery Seafood and Ebro Foods
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Ebro Foods 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 Ebro Foods 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 Ebro Foods SA, you can compare the effects of market volatilities on Lery Seafood and Ebro Foods 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 Ebro Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Ebro Foods.
Diversification Opportunities for Lery Seafood and Ebro Foods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lery and Ebro is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Ebro Foods SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebro Foods SA 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 Ebro Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebro Foods SA has no effect on the direction of Lery Seafood i.e., Lery Seafood and Ebro Foods go up and down completely randomly.
Pair Corralation between Lery Seafood and Ebro Foods
Assuming the 90 days trading horizon Lery Seafood Group is expected to under-perform the Ebro Foods. In addition to that, Lery Seafood is 2.32 times more volatile than Ebro Foods SA. It trades about -0.24 of its total potential returns per unit of risk. Ebro Foods SA is currently generating about 0.07 per unit of volatility. If you would invest 1,582 in Ebro Foods SA on October 13, 2024 and sell it today you would earn a total of 14.00 from holding Ebro Foods SA or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. Ebro Foods SA
Performance |
| Timeline |
| Lery Seafood Group |
| Ebro Foods SA |
Lery Seafood and Ebro Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Ebro Foods
The main advantage of trading using opposite Lery Seafood and Ebro Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Ebro Foods 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 Ebro Foods will offset losses from the drop in Ebro Foods' long position.| Lery Seafood vs. SalMar ASA | Lery Seafood vs. Grieg Seafood ASA | Lery Seafood vs. Austevoll Seafood ASA | Lery Seafood vs. Mowi ASA |
| Ebro Foods vs. AIR PRODCHEMICALS | Ebro Foods vs. Mitsui Chemicals | Ebro Foods vs. OURGAME INTHOLDL 00005 | Ebro Foods vs. Dalata Hotel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |