Correlation Between SalMar ASA and Ice Fish
Can any of the company-specific risk be diversified away by investing in both SalMar ASA and Ice Fish 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 SalMar ASA and Ice Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and Ice Fish Farm, you can compare the effects of market volatilities on SalMar ASA and Ice Fish 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 SalMar ASA with a short position of Ice Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and Ice Fish.
Diversification Opportunities for SalMar ASA and Ice Fish
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SalMar and Ice is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and Ice Fish Farm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Fish Farm and SalMar ASA 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 SalMar ASA are associated (or correlated) with Ice Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Fish Farm has no effect on the direction of SalMar ASA i.e., SalMar ASA and Ice Fish go up and down completely randomly.
Pair Corralation between SalMar ASA and Ice Fish
Assuming the 90 days trading horizon SalMar ASA is expected to generate 0.42 times more return on investment than Ice Fish. However, SalMar ASA is 2.36 times less risky than Ice Fish. It trades about 0.07 of its potential returns per unit of risk. Ice Fish Farm is currently generating about 0.02 per unit of risk. If you would invest 33,925 in SalMar ASA on September 12, 2024 and sell it today you would earn a total of 23,575 from holding SalMar ASA or generate 69.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SalMar ASA vs. Ice Fish Farm
Performance |
| Timeline |
| SalMar ASA |
| Ice Fish Farm |
SalMar ASA and Ice Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SalMar ASA and Ice Fish
The main advantage of trading using opposite SalMar ASA and Ice Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA position performs unexpectedly, Ice Fish 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 Ice Fish will offset losses from the drop in Ice Fish's long position.| SalMar ASA vs. Mowi ASA | SalMar ASA vs. Lery Seafood Group | SalMar ASA vs. Pf Bakkafrost | SalMar ASA vs. Grieg Seafood ASA |
| Ice Fish vs. Icelandic Salmon As | Ice Fish vs. Arctic Fish Holding | Ice Fish vs. Salmon Evolution Holding | Ice Fish vs. Grieg Seafood ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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