Correlation Between Waste Plastic and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Waste Plastic 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 Waste Plastic and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waste Plastic Upcycling and Grieg Seafood ASA, you can compare the effects of market volatilities on Waste Plastic 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 Waste Plastic with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waste Plastic and Grieg Seafood.
Diversification Opportunities for Waste Plastic and Grieg Seafood
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Waste and Grieg is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Waste Plastic Upcycling 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 Waste Plastic 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 Waste Plastic Upcycling 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 Waste Plastic i.e., Waste Plastic and Grieg Seafood go up and down completely randomly.
Pair Corralation between Waste Plastic and Grieg Seafood
Assuming the 90 days trading horizon Waste Plastic Upcycling is expected to under-perform the Grieg Seafood. In addition to that, Waste Plastic is 1.54 times more volatile than Grieg Seafood ASA. It trades about -0.02 of its total potential returns per unit of risk. Grieg Seafood ASA is currently generating about 0.0 per unit of volatility. If you would invest 7,106 in Grieg Seafood ASA on August 28, 2024 and sell it today you would lose (676.00) from holding Grieg Seafood ASA or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waste Plastic Upcycling vs. Grieg Seafood ASA
Performance |
| Timeline |
| Waste Plastic Upcycling |
| Grieg Seafood ASA |
Waste Plastic and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waste Plastic and Grieg Seafood
The main advantage of trading using opposite Waste Plastic and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waste Plastic 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.| Waste Plastic vs. Tomra Systems ASA | Waste Plastic vs. Elkem ASA | Waste Plastic vs. Vow ASA | Waste Plastic vs. North Energy ASA |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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