Correlation Between SalMar ASA and Clean Seas
Can any of the company-specific risk be diversified away by investing in both SalMar ASA and Clean Seas 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 Clean Seas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and Clean Seas Seafood, you can compare the effects of market volatilities on SalMar ASA and Clean Seas 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 Clean Seas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and Clean Seas.
Diversification Opportunities for SalMar ASA and Clean Seas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SalMar and Clean is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood 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 Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of SalMar ASA i.e., SalMar ASA and Clean Seas go up and down completely randomly.
Pair Corralation between SalMar ASA and Clean Seas
If you would invest 14.00 in Clean Seas Seafood on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Clean Seas Seafood or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SalMar ASA vs. Clean Seas Seafood
Performance |
| Timeline |
| SalMar ASA |
| Clean Seas Seafood |
SalMar ASA and Clean Seas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SalMar ASA and Clean Seas
The main advantage of trading using opposite SalMar ASA and Clean Seas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA position performs unexpectedly, Clean Seas 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 Clean Seas will offset losses from the drop in Clean Seas' long position.| SalMar ASA vs. Artisan Consumer Goods | SalMar ASA vs. Altavoz Entertainment | SalMar ASA vs. Avi Ltd ADR | SalMar ASA vs. Aryzta AG PK |
| Clean Seas vs. Boot Barn Holdings | Clean Seas vs. Avadel Pharmaceuticals PLC | Clean Seas vs. LENSAR Inc | Clean Seas vs. Nike Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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