Correlation Between Lery Seafood and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and FIRST SAVINGS 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 FIRST SAVINGS 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 FIRST SAVINGS FINL, you can compare the effects of market volatilities on Lery Seafood and FIRST SAVINGS 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 FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and FIRST SAVINGS.
Diversification Opportunities for Lery Seafood and FIRST SAVINGS
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lery and FIRST is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL 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 FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Lery Seafood i.e., Lery Seafood and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Lery Seafood and FIRST SAVINGS
Assuming the 90 days horizon Lery Seafood Group is expected to generate 3.59 times more return on investment than FIRST SAVINGS. However, Lery Seafood is 3.59 times more volatile than FIRST SAVINGS FINL. It trades about 0.07 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about 0.09 per unit of risk. If you would invest 152.00 in Lery Seafood Group on October 16, 2024 and sell it today you would earn a total of 264.00 from holding Lery Seafood Group or generate 173.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Lery Seafood Group |
| FIRST SAVINGS FINL |
Lery Seafood and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and FIRST SAVINGS
The main advantage of trading using opposite Lery Seafood and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS'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 |
| FIRST SAVINGS vs. POSBO UNSPADRS20YC1 | FIRST SAVINGS vs. Postal Savings Bank | FIRST SAVINGS vs. Truist Financial | FIRST SAVINGS vs. OVERSEA CHINUNSPADR2 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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