Correlation Between Lerøy Seafood and MOOG INC
Can any of the company-specific risk be diversified away by investing in both Lerøy Seafood and MOOG INC 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 MOOG INC 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 MOOG INC CL, you can compare the effects of market volatilities on Lerøy Seafood and MOOG INC 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 MOOG INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and MOOG INC.
Diversification Opportunities for Lerøy Seafood and MOOG INC
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lerøy and MOOG is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and MOOG INC CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOOG INC CL 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 MOOG INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOOG INC CL has no effect on the direction of Lerøy Seafood i.e., Lerøy Seafood and MOOG INC go up and down completely randomly.
Pair Corralation between Lerøy Seafood and MOOG INC
Assuming the 90 days horizon Lery Seafood Group is expected to generate 2.49 times more return on investment than MOOG INC. However, Lerøy Seafood is 2.49 times more volatile than MOOG INC CL. It trades about 0.07 of its potential returns per unit of risk. MOOG INC CL is currently generating about 0.06 per unit of risk. If you would invest 160.00 in Lery Seafood Group on September 14, 2024 and sell it today you would earn a total of 274.00 from holding Lery Seafood Group or generate 171.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. MOOG INC CL
Performance |
| Timeline |
| Lery Seafood Group |
| MOOG INC CL |
Lerøy Seafood and MOOG INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lerøy Seafood and MOOG INC
The main advantage of trading using opposite Lerøy Seafood and MOOG INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy Seafood position performs unexpectedly, MOOG INC 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 MOOG INC will offset losses from the drop in MOOG INC'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 |
| MOOG INC vs. Dairy Farm International | MOOG INC vs. Associated British Foods | MOOG INC vs. MCEWEN MINING INC | MOOG INC vs. Lery Seafood Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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