Correlation Between Roebuck Food and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Roebuck Food and Grieg 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 Roebuck Food and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Grieg Seafood, you can compare the effects of market volatilities on Roebuck Food and Grieg 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 Roebuck Food with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Grieg Seafood.
Diversification Opportunities for Roebuck Food and Grieg Seafood
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Roebuck and Grieg is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Roebuck Food 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 Roebuck Food Group are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Roebuck Food i.e., Roebuck Food and Grieg Seafood go up and down completely randomly.
Pair Corralation between Roebuck Food and Grieg Seafood
Assuming the 90 days trading horizon Roebuck Food Group is expected to generate 0.37 times more return on investment than Grieg Seafood. However, Roebuck Food Group is 2.67 times less risky than Grieg Seafood. It trades about 0.27 of its potential returns per unit of risk. Grieg Seafood is currently generating about -0.08 per unit of risk. If you would invest 1,680 in Roebuck Food Group on October 10, 2024 and sell it today you would earn a total of 70.00 from holding Roebuck Food Group or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roebuck Food Group vs. Grieg Seafood
Performance |
| Timeline |
| Roebuck Food Group |
| Grieg Seafood |
Roebuck Food and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Grieg Seafood
The main advantage of trading using opposite Roebuck Food and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food position performs unexpectedly, Grieg 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Roebuck Food vs. Hong Kong Land | Roebuck Food vs. abrdn Property Income | Roebuck Food vs. Ithaca Energy PLC | Roebuck Food vs. GRIT Real Estate |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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