Correlation Between Lery Seafood and Sogn Sparebank
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Sogn Sparebank 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 Sogn Sparebank 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 Sogn Sparebank, you can compare the effects of market volatilities on Lery Seafood and Sogn Sparebank 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 Sogn Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Sogn Sparebank.
Diversification Opportunities for Lery Seafood and Sogn Sparebank
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lery and Sogn is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Sogn Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogn Sparebank 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 Sogn Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogn Sparebank has no effect on the direction of Lery Seafood i.e., Lery Seafood and Sogn Sparebank go up and down completely randomly.
Pair Corralation between Lery Seafood and Sogn Sparebank
Assuming the 90 days trading horizon Lery Seafood is expected to generate 2.03 times less return on investment than Sogn Sparebank. But when comparing it to its historical volatility, Lery Seafood Group is 1.0 times less risky than Sogn Sparebank. It trades about 0.05 of its potential returns per unit of risk. Sogn Sparebank is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 14,374 in Sogn Sparebank on September 12, 2024 and sell it today you would earn a total of 10,621 from holding Sogn Sparebank or generate 73.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. Sogn Sparebank
Performance |
| Timeline |
| Lery Seafood Group |
| Sogn Sparebank |
Lery Seafood and Sogn Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Sogn Sparebank
The main advantage of trading using opposite Lery Seafood and Sogn Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Sogn Sparebank 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 Sogn Sparebank will offset losses from the drop in Sogn Sparebank'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 |
| Sogn Sparebank vs. Sparebanken Sor | Sogn Sparebank vs. SpareBank 1 stlandet | Sogn Sparebank vs. Kongsberg Gruppen ASA | Sogn Sparebank vs. Napatech AS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |