Correlation Between Lery Seafood and Lifeway Foods
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Lifeway 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 Lifeway 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 Lifeway Foods, you can compare the effects of market volatilities on Lery Seafood and Lifeway 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 Lifeway Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Lifeway Foods.
Diversification Opportunities for Lery Seafood and Lifeway Foods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lery and Lifeway is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Lifeway Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifeway 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 Lifeway Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifeway Foods has no effect on the direction of Lery Seafood i.e., Lery Seafood and Lifeway Foods go up and down completely randomly.
Pair Corralation between Lery Seafood and Lifeway Foods
Assuming the 90 days trading horizon Lery Seafood is expected to generate 3.49 times less return on investment than Lifeway Foods. But when comparing it to its historical volatility, Lery Seafood Group is 2.97 times less risky than Lifeway Foods. It trades about 0.05 of its potential returns per unit of risk. Lifeway Foods is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,360 in Lifeway Foods on September 23, 2024 and sell it today you would earn a total of 840.00 from holding Lifeway Foods or generate 61.76% 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. Lifeway Foods
Performance |
| Timeline |
| Lery Seafood Group |
| Lifeway Foods |
Lery Seafood and Lifeway Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Lifeway Foods
The main advantage of trading using opposite Lery Seafood and Lifeway Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Lifeway 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 Lifeway Foods will offset losses from the drop in Lifeway 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 |
| Lifeway Foods vs. Mowi ASA | Lifeway Foods vs. LEROY SEAFOOD GRUNSPADR | Lifeway Foods vs. Lery Seafood Group | Lifeway Foods 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |