Correlation Between Ikigai Ventures and Grieg Seafood

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

By analyzing existing cross correlation between Ikigai Ventures and Grieg Seafood, you can compare the effects of market volatilities on Ikigai Ventures and Grieg Seafood 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 Ikigai Ventures with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikigai Ventures and Grieg Seafood.

Diversification Opportunities for Ikigai Ventures and Grieg Seafood

0.12

Correlation Coefficient

Ikigai Ventures  Grieg Seafood

Average diversification

The 3 months correlation between Ikigai and Grieg is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ikigai Ventures and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Ikigai Ventures 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 Ikigai Ventures are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Ikigai Ventures i.e., Ikigai Ventures and Grieg Seafood go up and down completely randomly.

Pair Corralation between Ikigai Ventures and Grieg Seafood

Assuming the 90 days trading horizon Ikigai Ventures is expected to under-perform the Grieg Seafood. But the stock apears to be less risky and, when comparing its historical volatility, Ikigai Ventures is 3.71 times less risky than Grieg Seafood. The stock trades about -0.13 of its potential returns per unit of risk. The Grieg Seafood is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6,025  in Grieg Seafood on December 23, 2024 and sell it today you would lose (232.00) from holding Grieg Seafood or give up 3.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ikigai Ventures  vs.  Grieg Seafood

Ikigai Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ikigai Ventures 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.

Grieg Seafood

Risk-Adjusted Performance

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 comparatively stable basic indicators, Grieg Seafood is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ikigai Ventures and Grieg Seafood

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

The idea behind Ikigai Ventures and Grieg Seafood 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.