Correlation Between SalMar ASA and Minerva SA
Can any of the company-specific risk be diversified away by investing in both SalMar ASA and Minerva SA 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 SalMar ASA and Minerva SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SalMar ASA and Minerva SA, you can compare the effects of market volatilities on SalMar ASA and Minerva SA 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 SalMar ASA with a short position of Minerva SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SalMar ASA and Minerva SA.
Diversification Opportunities for SalMar ASA and Minerva SA
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SalMar and Minerva is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SalMar ASA and Minerva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva SA and SalMar 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 SalMar ASA are associated (or correlated) with Minerva SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva SA has no effect on the direction of SalMar ASA i.e., SalMar ASA and Minerva SA go up and down completely randomly.
Pair Corralation between SalMar ASA and Minerva SA
Assuming the 90 days horizon SalMar ASA is expected to under-perform the Minerva SA. But the pink sheet apears to be less risky and, when comparing its historical volatility, SalMar ASA is 3.07 times less risky than Minerva SA. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Minerva SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Minerva SA on December 2, 2024 and sell it today you would earn a total of 202.00 from holding Minerva SA or generate 51.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 88.52% |
Values | Daily Returns |
SalMar ASA vs. Minerva SA
Performance |
Timeline |
SalMar ASA |
Minerva SA |
SalMar ASA and Minerva SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SalMar ASA and Minerva SA
The main advantage of trading using opposite SalMar ASA and Minerva SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SalMar ASA position performs unexpectedly, Minerva SA 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 Minerva SA will offset losses from the drop in Minerva SA's long position.SalMar ASA vs. SLC Agricola SA | SalMar ASA vs. Cal Maine Foods | SalMar ASA vs. Bunge Limited | SalMar ASA vs. Austevoll Seafood ASA |
Minerva SA vs. Limoneira Co | Minerva SA vs. Fresh Del Monte | Minerva SA vs. Vital Farms | Minerva SA vs. Alico Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |