Correlation Between Proximar Seafood and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Grieg 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 Proximar Seafood and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proximar Seafood AS and Grieg Seafood ASA, you can compare the effects of market volatilities on Proximar Seafood and Grieg 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 Proximar Seafood with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Grieg Seafood.
Diversification Opportunities for Proximar Seafood and Grieg Seafood
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Proximar and Grieg is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Grieg Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood ASA and Proximar 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 Proximar Seafood AS are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood ASA has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Grieg Seafood go up and down completely randomly.
Pair Corralation between Proximar Seafood and Grieg Seafood
Assuming the 90 days trading horizon Proximar Seafood AS is expected to generate 1.48 times more return on investment than Grieg Seafood. However, Proximar Seafood is 1.48 times more volatile than Grieg Seafood ASA. It trades about 0.01 of its potential returns per unit of risk. Grieg Seafood ASA is currently generating about 0.0 per unit of risk. If you would invest 429.00 in Proximar Seafood AS on August 28, 2024 and sell it today you would lose (69.00) from holding Proximar Seafood AS or give up 16.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Grieg Seafood ASA
Performance |
| Timeline |
| Proximar Seafood |
| Grieg Seafood ASA |
Proximar Seafood and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Grieg Seafood
The main advantage of trading using opposite Proximar Seafood and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Grieg 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Proximar Seafood vs. Nidaros Sparebank | Proximar Seafood vs. Aasen Sparebank | Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Gaming Innovation Group |
| Grieg Seafood vs. Lery Seafood Group | Grieg Seafood vs. SalMar ASA | Grieg Seafood vs. Austevoll Seafood ASA | Grieg Seafood vs. Mowi ASA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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