Correlation Between Associated British and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both Associated British and Lery 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 Associated British and Lery Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated British Foods and Lery Seafood Group, you can compare the effects of market volatilities on Associated British and Lery 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 Associated British with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated British and Lery Seafood.
Diversification Opportunities for Associated British and Lery Seafood
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Associated and Lery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Associated British Foods and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and Associated British 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 Associated British Foods are associated (or correlated) with Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Associated British i.e., Associated British and Lery Seafood go up and down completely randomly.
Pair Corralation between Associated British and Lery Seafood
If you would invest 2,013 in Associated British Foods on December 30, 2023 and sell it today you would earn a total of 1,140 from holding Associated British Foods or generate 56.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Associated British Foods vs. Lery Seafood Group
Performance |
Timeline |
Associated British Foods |
Lery Seafood Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Good
Associated British and Lery Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Associated British and Lery Seafood
The main advantage of trading using opposite Associated British and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated British position performs unexpectedly, Lery 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.Associated British vs. Kraft Heinz Co | Associated British vs. General Mills | Associated British vs. Danone PK | Associated British vs. Kellanova |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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