Correlation Between Nordic Mining and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both Nordic Mining and Lery Seafood 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 Nordic Mining and Lery Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Mining ASA and Lery Seafood Group, you can compare the effects of market volatilities on Nordic Mining and Lery Seafood 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 Nordic Mining with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Mining and Lery Seafood.
Diversification Opportunities for Nordic Mining and Lery Seafood
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and Lery is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Mining ASA and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and Nordic Mining 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 Nordic Mining ASA are associated (or correlated) with Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Nordic Mining i.e., Nordic Mining and Lery Seafood go up and down completely randomly.
Pair Corralation between Nordic Mining and Lery Seafood
Assuming the 90 days trading horizon Nordic Mining ASA is expected to under-perform the Lery Seafood. In addition to that, Nordic Mining is 1.75 times more volatile than Lery Seafood Group. It trades about -0.65 of its total potential returns per unit of risk. Lery Seafood Group is currently generating about 0.4 per unit of volatility. If you would invest 4,864 in Lery Seafood Group on October 23, 2024 and sell it today you would earn a total of 406.00 from holding Lery Seafood Group or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Nordic Mining ASA vs. Lery Seafood Group
Performance |
| Timeline |
| Nordic Mining ASA |
| Lery Seafood Group |
Nordic Mining and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Mining and Lery Seafood
The main advantage of trading using opposite Nordic Mining and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Mining position performs unexpectedly, Lery Seafood 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.| Nordic Mining vs. Austevoll Seafood ASA | Nordic Mining vs. Melhus Sparebank | Nordic Mining vs. Cloudberry Clean Energy | Nordic Mining vs. NorAm Drilling 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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