Correlation Between Proximar Seafood and Romerike Sparebank
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Romerike Sparebank 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 Romerike Sparebank 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 Romerike Sparebank, you can compare the effects of market volatilities on Proximar Seafood and Romerike Sparebank 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 Romerike Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Romerike Sparebank.
Diversification Opportunities for Proximar Seafood and Romerike Sparebank
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proximar and Romerike is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Romerike Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Romerike Sparebank 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 Romerike Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Romerike Sparebank has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Romerike Sparebank go up and down completely randomly.
Pair Corralation between Proximar Seafood and Romerike Sparebank
Assuming the 90 days trading horizon Proximar Seafood AS is expected to under-perform the Romerike Sparebank. But the stock apears to be less risky and, when comparing its historical volatility, Proximar Seafood AS is 1.05 times less risky than Romerike Sparebank. The stock trades about -0.18 of its potential returns per unit of risk. The Romerike Sparebank is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 13,200 in Romerike Sparebank on December 1, 2024 and sell it today you would earn a total of 400.00 from holding Romerike Sparebank or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Romerike Sparebank
Performance |
| Timeline |
| Proximar Seafood |
| Romerike Sparebank |
Proximar Seafood and Romerike Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Romerike Sparebank
The main advantage of trading using opposite Proximar Seafood and Romerike Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Romerike Sparebank 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 Romerike Sparebank will offset losses from the drop in Romerike Sparebank's long position.| Proximar Seafood vs. Aasen Sparebank | Proximar Seafood vs. Morrow Bank ASA | Proximar Seafood vs. Arcticzymes Technologies ASA | Proximar Seafood vs. Napatech AS |
| Romerike Sparebank vs. Proximar Seafood AS | Romerike Sparebank vs. Sparebank 1 SMN | Romerike Sparebank vs. Austevoll Seafood ASA | Romerike Sparebank vs. Sparebanken Ost |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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