Correlation Between Salmon Evolution and Gigante Salmon
Can any of the company-specific risk be diversified away by investing in both Salmon Evolution and Gigante Salmon 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 Salmon Evolution and Gigante Salmon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salmon Evolution Holding and Gigante Salmon AS, you can compare the effects of market volatilities on Salmon Evolution and Gigante Salmon 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 Salmon Evolution with a short position of Gigante Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salmon Evolution and Gigante Salmon.
Diversification Opportunities for Salmon Evolution and Gigante Salmon
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salmon and Gigante is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Salmon Evolution Holding and Gigante Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigante Salmon AS and Salmon Evolution 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 Salmon Evolution Holding are associated (or correlated) with Gigante Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigante Salmon AS has no effect on the direction of Salmon Evolution i.e., Salmon Evolution and Gigante Salmon go up and down completely randomly.
Pair Corralation between Salmon Evolution and Gigante Salmon
Assuming the 90 days trading horizon Salmon Evolution Holding is expected to under-perform the Gigante Salmon. But the stock apears to be less risky and, when comparing its historical volatility, Salmon Evolution Holding is 1.58 times less risky than Gigante Salmon. The stock trades about -0.02 of its potential returns per unit of risk. The Gigante Salmon AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 756.00 in Gigante Salmon AS on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Gigante Salmon AS or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salmon Evolution Holding vs. Gigante Salmon AS
Performance |
| Timeline |
| Salmon Evolution Holding |
| Gigante Salmon AS |
Salmon Evolution and Gigante Salmon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salmon Evolution and Gigante Salmon
The main advantage of trading using opposite Salmon Evolution and Gigante Salmon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salmon Evolution position performs unexpectedly, Gigante Salmon 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 Gigante Salmon will offset losses from the drop in Gigante Salmon's long position.| Salmon Evolution vs. Sparebank 1 SMN | Salmon Evolution vs. Polaris Media | Salmon Evolution vs. Romsdal Sparebank | Salmon Evolution vs. Kraft Bank Asa |
| Gigante Salmon vs. Andfjord Salmon AS | Gigante Salmon vs. Salmon Evolution Holding | Gigante Salmon vs. Biofish Holding AS | Gigante Salmon vs. Nordic Aqua Partners |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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