Correlation Between Lery Seafood and Computer

Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Computer 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 Computer 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 Computer And Technologies, you can compare the effects of market volatilities on Lery Seafood and Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Computer.

Diversification Opportunities for Lery Seafood and Computer

0.1

Correlation Coefficient

Lery Seafood  Computer

Average diversification

The 3 months correlation between Lery and Computer is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Lery Seafood i.e., Lery Seafood and Computer go up and down completely randomly.

Pair Corralation between Lery Seafood and Computer

Assuming the 90 days horizon Lery Seafood Group is expected to generate 0.86 times more return on investment than Computer. However, Lery Seafood Group is 1.16 times less risky than Computer. It trades about 0.01 of its potential returns per unit of risk. Computer And Technologies is currently generating about -0.16 per unit of risk. If you would invest  417.00  in Lery Seafood Group on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Lery Seafood Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Lery Seafood Group  vs.  Computer And Technologies

Lery Seafood Group

Risk-Adjusted Performance

0 of 100

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 nearly stable basic indicators, Lery Seafood is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Computer And Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer And Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Lery Seafood and Computer

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

The idea behind Lery Seafood Group and Computer And Technologies 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.