Correlation Between Grieg Seafood and Science In

Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Science In 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 Science In into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grieg Seafood and Science in Sport, you can compare the effects of market volatilities on Grieg Seafood and Science In 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 Science In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Science In.

Diversification Opportunities for Grieg Seafood and Science In

-0.02

Correlation Coefficient

Grieg Seafood  Science In

Good diversification

The 3 months correlation between Grieg and Science is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Science in Sport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science in Sport 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 Science In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science in Sport has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Science In go up and down completely randomly.

Pair Corralation between Grieg Seafood and Science In

Assuming the 90 days trading horizon Grieg Seafood is expected to generate 1.44 times more return on investment than Science In. However, Grieg Seafood is 1.44 times more volatile than Science in Sport. It trades about 0.02 of its potential returns per unit of risk. Science in Sport is currently generating about 0.01 per unit of risk. If you would invest  6,025  in Grieg Seafood on October 24, 2024 and sell it today you would earn a total of  20.00  from holding Grieg Seafood or generate 0.33% 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.  Science in Sport

Grieg Seafood

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grieg Seafood has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Science in Sport

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Science in Sport are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Science In is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Grieg Seafood and Science In

The main advantage of trading using opposite Grieg Seafood and Science In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Science In 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 Science In will offset losses from the drop in Science In's long position.

The idea behind Grieg Seafood and Science in Sport pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.