Correlation Between Icelandic Salmon and Origo Hf

Can any of the company-specific risk be diversified away by investing in both Icelandic Salmon and Origo Hf 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 Icelandic Salmon and Origo Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Icelandic Salmon AS and Origo Hf, you can compare the effects of market volatilities on Icelandic Salmon and Origo Hf 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 Icelandic Salmon with a short position of Origo Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icelandic Salmon and Origo Hf.

Diversification Opportunities for Icelandic Salmon and Origo Hf

0.0

Correlation Coefficient

Icelandic Salmon  Origo Hf

Pay attention - limited upside

The 3 months correlation between Icelandic and Origo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icelandic Salmon AS and Origo Hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origo Hf and Icelandic Salmon 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 Icelandic Salmon AS are associated (or correlated) with Origo Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origo Hf has no effect on the direction of Icelandic Salmon i.e., Icelandic Salmon and Origo Hf go up and down completely randomly.

Pair Corralation between Icelandic Salmon and Origo Hf

If you would invest  0.00  in Origo Hf on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Origo Hf or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Icelandic Salmon AS  vs.  Origo Hf

Icelandic Salmon

Risk-Adjusted Performance

Very Weak

Over the last 90 days Icelandic Salmon AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Origo Hf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Origo Hf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Origo Hf is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Icelandic Salmon and Origo Hf

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

The idea behind Icelandic Salmon AS and Origo Hf 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.