Correlation Between Grieg Seafood and Ashtead Technology
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Ashtead Technology 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 Grieg Seafood and Ashtead Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Ashtead Technology Holdings, you can compare the effects of market volatilities on Grieg Seafood and Ashtead Technology 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 Grieg Seafood with a short position of Ashtead Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Ashtead Technology.
Diversification Opportunities for Grieg Seafood and Ashtead Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Ashtead is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Ashtead Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Technology and Grieg 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 Grieg Seafood are associated (or correlated) with Ashtead Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Technology has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Ashtead Technology go up and down completely randomly.
Pair Corralation between Grieg Seafood and Ashtead Technology
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.08 times more return on investment than Ashtead Technology. However, Grieg Seafood is 1.08 times more volatile than Ashtead Technology Holdings. It trades about 0.07 of its potential returns per unit of risk. Ashtead Technology Holdings is currently generating about -0.03 per unit of risk. If you would invest 6,010 in Grieg Seafood on October 4, 2024 and sell it today you would earn a total of 158.00 from holding Grieg Seafood or generate 2.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grieg Seafood vs. Ashtead Technology Holdings
Performance |
Timeline |
Grieg Seafood |
Ashtead Technology |
Grieg Seafood and Ashtead Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grieg Seafood and Ashtead Technology
The main advantage of trading using opposite Grieg Seafood and Ashtead Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Ashtead Technology 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 Ashtead Technology will offset losses from the drop in Ashtead Technology's long position.Grieg Seafood vs. Southern Copper Corp | Grieg Seafood vs. AfriTin Mining | Grieg Seafood vs. Allianz Technology Trust | Grieg Seafood vs. Check Point Software |
Ashtead Technology vs. Zoom Video Communications | Ashtead Technology vs. Enbridge | Ashtead Technology vs. Endo International PLC | Ashtead Technology vs. Tissue Regenix 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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