Correlation Between Lerøy Seafood and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Lerøy Seafood and TFS FINANCIAL 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 Lerøy Seafood and TFS FINANCIAL 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 TFS FINANCIAL, you can compare the effects of market volatilities on Lerøy Seafood and TFS FINANCIAL 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 Lerøy Seafood with a short position of TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and TFS FINANCIAL.
Diversification Opportunities for Lerøy Seafood and TFS FINANCIAL
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lerøy and TFS is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL and Lerøy 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 TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of Lerøy Seafood i.e., Lerøy Seafood and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between Lerøy Seafood and TFS FINANCIAL
Assuming the 90 days horizon Lery Seafood Group is expected to generate 1.42 times more return on investment than TFS FINANCIAL. However, Lerøy Seafood is 1.42 times more volatile than TFS FINANCIAL. It trades about -0.29 of its potential returns per unit of risk. TFS FINANCIAL is currently generating about -0.44 per unit of risk. If you would invest 446.00 in Lery Seafood Group on September 24, 2024 and sell it today you would lose (42.00) from holding Lery Seafood Group or give up 9.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Lery Seafood Group vs. TFS FINANCIAL
Performance |
Timeline |
Lery Seafood Group |
TFS FINANCIAL |
Lerøy Seafood and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lerøy Seafood and TFS FINANCIAL
The main advantage of trading using opposite Lerøy Seafood and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy Seafood position performs unexpectedly, TFS FINANCIAL 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL's long position.Lerøy Seafood vs. Mowi ASA | Lerøy Seafood vs. LEROY SEAFOOD GRUNSPADR | Lerøy Seafood vs. Lery Seafood Group | Lerøy Seafood vs. Nisshin Seifun Group |
TFS FINANCIAL vs. Lery Seafood Group | TFS FINANCIAL vs. MUTUIONLINE | TFS FINANCIAL vs. Carsales | TFS FINANCIAL vs. SENECA FOODS A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |