Correlation Between Lery Seafood and Ares Management
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Ares Management 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 Lery Seafood and Ares Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and Ares Management Corp, you can compare the effects of market volatilities on Lery Seafood and Ares Management 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 Lery Seafood with a short position of Ares Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Ares Management.
Diversification Opportunities for Lery Seafood and Ares Management
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lery and Ares is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Ares Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Management Corp and Lery Seafood 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 Lery Seafood Group are associated (or correlated) with Ares Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Management Corp has no effect on the direction of Lery Seafood i.e., Lery Seafood and Ares Management go up and down completely randomly.
Pair Corralation between Lery Seafood and Ares Management
Assuming the 90 days horizon Lery Seafood Group is expected to generate 0.8 times more return on investment than Ares Management. However, Lery Seafood Group is 1.24 times less risky than Ares Management. It trades about 0.39 of its potential returns per unit of risk. Ares Management Corp is currently generating about 0.2 per unit of risk. If you would invest 421.00 in Lery Seafood Group on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Lery Seafood Group or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. Ares Management Corp
Performance |
| Timeline |
| Lery Seafood Group |
| Ares Management Corp |
Lery Seafood and Ares Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Ares Management
The main advantage of trading using opposite Lery Seafood and Ares Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Ares Management 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 Ares Management will offset losses from the drop in Ares Management's long position.| Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group |
| Ares Management vs. MCEWEN MINING INC | Ares Management vs. Aya Gold Silver | Ares Management vs. MAG SILVER | Ares Management vs. Yanzhou Coal Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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