Correlation Between Proximar Seafood and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood 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 Proximar Seafood and Lery 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 Lery Seafood Group, you can compare the effects of market volatilities on Proximar Seafood 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 Proximar Seafood with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Lery Seafood.
Diversification Opportunities for Proximar Seafood and Lery Seafood
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proximar and Lery is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS 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 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 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 Proximar Seafood i.e., Proximar Seafood and Lery Seafood go up and down completely randomly.
Pair Corralation between Proximar Seafood and Lery Seafood
Assuming the 90 days trading horizon Proximar Seafood AS is expected to generate 1.92 times more return on investment than Lery Seafood. However, Proximar Seafood is 1.92 times more volatile than Lery Seafood Group. It trades about 0.01 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.01 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Lery Seafood Group
Performance |
| Timeline |
| Proximar Seafood |
| Lery Seafood Group |
Proximar Seafood and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Lery Seafood
The main advantage of trading using opposite Proximar Seafood and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood 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.| Proximar Seafood vs. Nidaros Sparebank | Proximar Seafood vs. Aasen Sparebank | Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Gaming Innovation 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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