Correlation Between Proximar Seafood and Skue Sparebank
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Skue 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 Skue 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 Skue Sparebank, you can compare the effects of market volatilities on Proximar Seafood and Skue 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 Skue Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Skue Sparebank.
Diversification Opportunities for Proximar Seafood and Skue Sparebank
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proximar and Skue is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Skue Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skue 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 Skue Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skue Sparebank has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Skue Sparebank go up and down completely randomly.
Pair Corralation between Proximar Seafood and Skue Sparebank
Assuming the 90 days trading horizon Proximar Seafood AS is expected to under-perform the Skue Sparebank. In addition to that, Proximar Seafood is 2.0 times more volatile than Skue Sparebank. It trades about -0.08 of its total potential returns per unit of risk. Skue Sparebank is currently generating about 0.03 per unit of volatility. If you would invest 25,300 in Skue Sparebank on August 30, 2024 and sell it today you would earn a total of 200.00 from holding Skue Sparebank or generate 0.79% 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. Skue Sparebank
Performance |
| Timeline |
| Proximar Seafood |
| Skue Sparebank |
Proximar Seafood and Skue Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Skue Sparebank
The main advantage of trading using opposite Proximar Seafood and Skue Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Skue 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 Skue Sparebank will offset losses from the drop in Skue Sparebank's long position.| Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Nordic Technology Group | Proximar Seafood vs. Romerike Sparebank | Proximar Seafood vs. Morrow Bank ASA |
| Skue Sparebank vs. Melhus Sparebank | Skue Sparebank vs. Sparebanken Ost | Skue Sparebank vs. Sparebanken Sor |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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