Correlation Between Proximar Seafood and Itera ASA
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Itera ASA 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 Itera ASA 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 Itera ASA, you can compare the effects of market volatilities on Proximar Seafood and Itera ASA 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 Itera ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Itera ASA.
Diversification Opportunities for Proximar Seafood and Itera ASA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Proximar and Itera is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Itera ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itera 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 Itera ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itera ASA has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Itera ASA go up and down completely randomly.
Pair Corralation between Proximar Seafood and Itera ASA
Assuming the 90 days trading horizon Proximar Seafood AS is expected to generate 1.05 times more return on investment than Itera ASA. However, Proximar Seafood is 1.05 times more volatile than Itera ASA. It trades about 0.09 of its potential returns per unit of risk. Itera ASA is currently generating about -0.04 per unit of risk. If you would invest 360.00 in Proximar Seafood AS on October 7, 2024 and sell it today you would earn a total of 8.00 from holding Proximar Seafood AS or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Itera ASA
Performance |
| Timeline |
| Proximar Seafood |
| Itera ASA |
Proximar Seafood and Itera ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Itera ASA
The main advantage of trading using opposite Proximar Seafood and Itera ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Itera ASA 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 Itera ASA will offset losses from the drop in Itera ASA's long position.| Proximar Seafood vs. Instabank ASA | Proximar Seafood vs. Nidaros Sparebank | Proximar Seafood vs. Romsdal Sparebank | Proximar Seafood vs. Aasen Sparebank |
| Itera ASA vs. Awilco Drilling PLC | Itera ASA vs. Arcticzymes Technologies ASA | Itera ASA vs. SpareBank 1 stlandet | Itera ASA vs. Grong Sparebank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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