Correlation Between Lerøy Seafood and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Lerøy Seafood and INTER CARS 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 INTER CARS 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 INTER CARS SA, you can compare the effects of market volatilities on Lerøy Seafood and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and INTER CARS.
Diversification Opportunities for Lerøy Seafood and INTER CARS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lerøy and INTER is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Lerøy Seafood i.e., Lerøy Seafood and INTER CARS go up and down completely randomly.
Pair Corralation between Lerøy Seafood and INTER CARS
Assuming the 90 days horizon Lery Seafood Group is expected to under-perform the INTER CARS. But the stock apears to be less risky and, when comparing its historical volatility, Lery Seafood Group is 1.16 times less risky than INTER CARS. The stock trades about -0.02 of its potential returns per unit of risk. The INTER CARS SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11,600 in INTER CARS SA on September 13, 2024 and sell it today you would earn a total of 80.00 from holding INTER CARS SA or generate 0.69% 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. INTER CARS SA
Performance |
| Timeline |
| Lery Seafood Group |
| INTER CARS SA |
Lerøy Seafood and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lerøy Seafood and INTER CARS
The main advantage of trading using opposite Lerøy Seafood and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy Seafood position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Lerøy Seafood vs. Hormel Foods | Lerøy Seafood vs. Superior Plus Corp | Lerøy Seafood vs. SIVERS SEMICONDUCTORS AB | Lerøy Seafood vs. NorAm Drilling AS |
| INTER CARS vs. Bridgestone | INTER CARS vs. Superior Plus Corp | INTER CARS vs. SIVERS SEMICONDUCTORS AB | INTER CARS vs. Norsk Hydro ASA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |