Correlation Between Lery Seafood and ROBERTET
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and ROBERTET 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 ROBERTET 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 ROBERTET SA INH, you can compare the effects of market volatilities on Lery Seafood and ROBERTET 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 ROBERTET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and ROBERTET.
Diversification Opportunities for Lery Seafood and ROBERTET
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lery and ROBERTET is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and ROBERTET SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROBERTET SA INH 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 ROBERTET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROBERTET SA INH has no effect on the direction of Lery Seafood i.e., Lery Seafood and ROBERTET go up and down completely randomly.
Pair Corralation between Lery Seafood and ROBERTET
Assuming the 90 days horizon Lery Seafood Group is expected to under-perform the ROBERTET. In addition to that, Lery Seafood is 1.33 times more volatile than ROBERTET SA INH. It trades about -0.16 of its total potential returns per unit of risk. ROBERTET SA INH is currently generating about -0.13 per unit of volatility. If you would invest 86,600 in ROBERTET SA INH on October 11, 2024 and sell it today you would lose (2,700) from holding ROBERTET SA INH or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. ROBERTET SA INH
Performance |
| Timeline |
| Lery Seafood Group |
| ROBERTET SA INH |
Lery Seafood and ROBERTET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and ROBERTET
The main advantage of trading using opposite Lery Seafood and ROBERTET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, ROBERTET 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 ROBERTET will offset losses from the drop in ROBERTET'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 |
| ROBERTET vs. OFFICE DEPOT | ROBERTET vs. SEKISUI CHEMICAL | ROBERTET vs. Corporate Office Properties | ROBERTET vs. SWISS WATER DECAFFCOFFEE |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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