Correlation Between Lery Seafood and Global Ship
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on Lery Seafood and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Global Ship.
Diversification Opportunities for Lery Seafood and Global Ship
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lery and Global is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Lery Seafood i.e., Lery Seafood and Global Ship go up and down completely randomly.
Pair Corralation between Lery Seafood and Global Ship
Assuming the 90 days horizon Lery Seafood Group is expected to generate 1.17 times more return on investment than Global Ship. However, Lery Seafood is 1.17 times more volatile than Global Ship Lease. It trades about 0.33 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.38 per unit of risk. If you would invest 421.00 in Lery Seafood Group on November 1, 2024 and sell it today you would earn a total of 41.00 from holding Lery Seafood Group or generate 9.74% 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. Global Ship Lease
Performance |
| Timeline |
| Lery Seafood Group |
| Global Ship Lease |
Lery Seafood and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Global Ship
The main advantage of trading using opposite Lery Seafood and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship'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 |
| Global Ship vs. United Airlines Holdings | Global Ship vs. Micron Technology | Global Ship vs. JAPAN AIRLINES | Global Ship vs. MACOM Technology Solutions |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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