Correlation Between Proximar Seafood and Morrow Bank
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Morrow Bank 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 Morrow Bank 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 Morrow Bank ASA, you can compare the effects of market volatilities on Proximar Seafood and Morrow Bank 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 Morrow Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Morrow Bank.
Diversification Opportunities for Proximar Seafood and Morrow Bank
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proximar and Morrow is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Morrow Bank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morrow Bank 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 Morrow Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morrow Bank ASA has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Morrow Bank go up and down completely randomly.
Pair Corralation between Proximar Seafood and Morrow Bank
Assuming the 90 days trading horizon Proximar Seafood AS is expected to under-perform the Morrow Bank. But the stock apears to be less risky and, when comparing its historical volatility, Proximar Seafood AS is 1.0 times less risky than Morrow Bank. The stock trades about -0.02 of its potential returns per unit of risk. The Morrow Bank ASA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Morrow Bank ASA on August 29, 2024 and sell it today you would earn a total of 398.00 from holding Morrow Bank ASA or generate 86.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Morrow Bank ASA
Performance |
| Timeline |
| Proximar Seafood |
| Morrow Bank ASA |
Proximar Seafood and Morrow Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Morrow Bank
The main advantage of trading using opposite Proximar Seafood and Morrow Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Morrow Bank 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 Morrow Bank will offset losses from the drop in Morrow Bank'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 |
| Morrow Bank vs. Grong Sparebank | Morrow Bank vs. Proximar Seafood AS | Morrow Bank vs. Nordic Mining ASA | Morrow Bank vs. Odfjell Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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