Correlation Between Navamedic ASA and Grieg Seafood

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

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

Diversification Opportunities for Navamedic ASA and Grieg Seafood

0.0

Correlation Coefficient

Navamedic ASA  Grieg Seafood

Pay attention - limited upside

The 3 months correlation between Navamedic and Grieg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Navamedic ASA and Grieg Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood ASA and Navamedic ASA 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 Navamedic ASA 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 ASA has no effect on the direction of Navamedic ASA i.e., Navamedic ASA and Grieg Seafood go up and down completely randomly.

Pair Corralation between Navamedic ASA and Grieg Seafood

If you would invest (100.00) in Navamedic ASA on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Navamedic ASA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Navamedic ASA  vs.  Grieg Seafood ASA

Navamedic ASA

Risk-Adjusted Performance

Very Weak

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

Grieg Seafood ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grieg Seafood ASA 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 technical and fundamental 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 Navamedic ASA and Grieg Seafood

The main advantage of trading using opposite Navamedic ASA and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navamedic ASA 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 Navamedic ASA and Grieg Seafood ASA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.