Correlation Between Lerøy Seafood and ROBERTET
Can any of the company-specific risk be diversified away by investing in both Lerøy 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 Lerøy 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 Lerøy 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 Lerøy Seafood with a short position of ROBERTET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and ROBERTET.
Diversification Opportunities for Lerøy Seafood and ROBERTET
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lerøy and ROBERTET is -0.18. 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 Lerøy 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 Lerøy Seafood i.e., Lerøy Seafood and ROBERTET go up and down completely randomly.
Pair Corralation between Lerøy Seafood and ROBERTET
Assuming the 90 days horizon Lery Seafood Group is expected to generate 5.98 times more return on investment than ROBERTET. However, Lerøy Seafood is 5.98 times more volatile than ROBERTET SA INH. It trades about 0.06 of its potential returns per unit of risk. ROBERTET SA INH is currently generating about 0.01 per unit of risk. If you would invest 92.00 in Lery Seafood Group on September 23, 2024 and sell it today you would earn a total of 312.00 from holding Lery Seafood Group or generate 339.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. ROBERTET SA INH
Performance |
| Timeline |
| Lery Seafood Group |
| ROBERTET SA INH |
Lerøy Seafood and ROBERTET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lerøy Seafood and ROBERTET
The main advantage of trading using opposite Lerøy Seafood and ROBERTET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy 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.| Lerøy Seafood vs. Mowi ASA | Lerøy Seafood vs. LEROY SEAFOOD GRUNSPADR | Lerøy Seafood vs. Yihai International Holding | Lerøy Seafood vs. Lery Seafood Group |
| ROBERTET vs. DATANG INTL POW | ROBERTET vs. PT Indofood Sukses | ROBERTET vs. Cass Information Systems | ROBERTET vs. Lery Seafood Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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