Correlation Between Lery Seafood and DAIDO METAL
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and DAIDO METAL 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 DAIDO METAL 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 DAIDO METAL TD, you can compare the effects of market volatilities on Lery Seafood and DAIDO METAL 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 DAIDO METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and DAIDO METAL.
Diversification Opportunities for Lery Seafood and DAIDO METAL
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lery and DAIDO is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and DAIDO METAL TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAIDO METAL TD 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 DAIDO METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIDO METAL TD has no effect on the direction of Lery Seafood i.e., Lery Seafood and DAIDO METAL go up and down completely randomly.
Pair Corralation between Lery Seafood and DAIDO METAL
Assuming the 90 days horizon Lery Seafood Group is expected to generate 1.15 times more return on investment than DAIDO METAL. However, Lery Seafood is 1.15 times more volatile than DAIDO METAL TD. It trades about 0.07 of its potential returns per unit of risk. DAIDO METAL TD is currently generating about 0.02 per unit of risk. If you would invest 422.00 in Lery Seafood Group on November 1, 2024 and sell it today you would earn a total of 40.00 from holding Lery Seafood Group or generate 9.48% 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. DAIDO METAL TD
Performance |
| Timeline |
| Lery Seafood Group |
| DAIDO METAL TD |
Lery Seafood and DAIDO METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and DAIDO METAL
The main advantage of trading using opposite Lery Seafood and DAIDO METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, DAIDO METAL 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 DAIDO METAL will offset losses from the drop in DAIDO METAL'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 |
| DAIDO METAL vs. Broadwind | DAIDO METAL vs. Citic Telecom International | DAIDO METAL vs. BII Railway Transportation | DAIDO METAL vs. China Communications Services |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |