Correlation Between Lerøy Seafood and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Lerøy Seafood and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Lerøy Seafood and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and MAVEN WIRELESS.
Diversification Opportunities for Lerøy Seafood and MAVEN WIRELESS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lerøy and MAVEN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Lerøy Seafood i.e., Lerøy Seafood and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Lerøy Seafood and MAVEN WIRELESS
Assuming the 90 days horizon Lery Seafood Group is expected to generate 0.49 times more return on investment than MAVEN WIRELESS. However, Lery Seafood Group is 2.03 times less risky than MAVEN WIRELESS. It trades about 0.14 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.24 per unit of risk. If you would invest 433.00 in Lery Seafood Group on September 17, 2024 and sell it today you would earn a total of 17.00 from holding Lery Seafood Group or generate 3.93% 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. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Lery Seafood Group |
| MAVEN WIRELESS SWEDEN |
Lerøy Seafood and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lerøy Seafood and MAVEN WIRELESS
The main advantage of trading using opposite Lerøy Seafood and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy Seafood position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Lerøy Seafood vs. Superior Plus Corp | Lerøy Seafood vs. SIVERS SEMICONDUCTORS AB | Lerøy Seafood vs. NorAm Drilling AS | Lerøy Seafood vs. Norsk Hydro ASA |
| MAVEN WIRELESS vs. AGF Management Limited | MAVEN WIRELESS vs. Waste Management | MAVEN WIRELESS vs. Lery Seafood Group | MAVEN WIRELESS vs. ASSOC BR FOODS |
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.
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