Correlation Between Lery Seafood and Schibsted ASA

Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Schibsted ASA 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 Lery Seafood and Schibsted ASA 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 Schibsted ASA B, you can compare the effects of market volatilities on Lery Seafood and Schibsted ASA 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 Lery Seafood with a short position of Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Schibsted ASA.

Diversification Opportunities for Lery Seafood and Schibsted ASA

0.39

Correlation Coefficient

Lery Seafood  Schibsted ASA

Weak diversification

The 3 months correlation between Lery and Schibsted is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B and Lery 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Lery Seafood i.e., Lery Seafood and Schibsted ASA go up and down completely randomly.

Pair Corralation between Lery Seafood and Schibsted ASA

Assuming the 90 days trading horizon Lery Seafood Group is expected to generate 0.74 times more return on investment than Schibsted ASA. However, Lery Seafood Group is 1.36 times less risky than Schibsted ASA. It trades about 0.0 of its potential returns per unit of risk. Schibsted ASA B is currently generating about -0.15 per unit of risk. If you would invest  4,920  in Lery Seafood Group on December 31, 2024 and sell it today you would lose (24.00) from holding Lery Seafood Group or give up 0.49% of portfolio value over 90 days.

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

Lery Seafood Group  vs.  Schibsted ASA B

Lery Seafood Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lery Seafood Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Lery Seafood is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Schibsted ASA B

Risk-Adjusted Performance

Very Weak

Over the last 90 days Schibsted ASA B has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Lery Seafood and Schibsted ASA

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

The idea behind Lery Seafood Group and Schibsted ASA B 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.