Correlation Between Sparebanken Ost and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Sparebanken Ost 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 Sparebanken Ost and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebanken Ost and Grieg Seafood ASA, you can compare the effects of market volatilities on Sparebanken Ost 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 Sparebanken Ost with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebanken Ost and Grieg Seafood.
Diversification Opportunities for Sparebanken Ost and Grieg Seafood
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparebanken and Grieg is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sparebanken Ost and Grieg Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood ASA and Sparebanken Ost 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 Sparebanken Ost 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 ASA has no effect on the direction of Sparebanken Ost i.e., Sparebanken Ost and Grieg Seafood go up and down completely randomly.
Pair Corralation between Sparebanken Ost and Grieg Seafood
Assuming the 90 days trading horizon Sparebanken Ost is expected to generate 0.38 times more return on investment than Grieg Seafood. However, Sparebanken Ost is 2.66 times less risky than Grieg Seafood. It trades about 0.11 of its potential returns per unit of risk. Grieg Seafood ASA is currently generating about -0.05 per unit of risk. If you would invest 7,150 in Sparebanken Ost on October 25, 2024 and sell it today you would earn a total of 110.00 from holding Sparebanken Ost or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sparebanken Ost vs. Grieg Seafood ASA
Performance |
| Timeline |
| Sparebanken Ost |
| Grieg Seafood ASA |
Sparebanken Ost and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebanken Ost and Grieg Seafood
The main advantage of trading using opposite Sparebanken Ost and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebanken Ost 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.| Sparebanken Ost vs. Morrow Bank ASA | Sparebanken Ost vs. Pareto Bank ASA | Sparebanken Ost vs. Odfjell Drilling | Sparebanken Ost vs. Xplora Technologies As |
| Grieg Seafood vs. Lery Seafood Group | Grieg Seafood vs. SalMar ASA | Grieg Seafood vs. Austevoll Seafood ASA | Grieg Seafood vs. Mowi 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |