Correlation Between Clean Seas and Atlantic Sapphire

Can any of the company-specific risk be diversified away by investing in both Clean Seas and Atlantic Sapphire 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 Clean Seas and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Clean Seas and Atlantic Sapphire

0.0

Correlation Coefficient

Clean Seas  Atlantic Sapphire

Pay attention - limited upside

The 3 months correlation between Clean and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clean Seas Seafood and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA and Clean Seas 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 Clean Seas Seafood are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of Clean Seas i.e., Clean Seas and Atlantic Sapphire go up and down completely randomly.

Pair Corralation between Clean Seas and Atlantic Sapphire

Assuming the 90 days horizon Clean Seas Seafood is expected to under-perform the Atlantic Sapphire. But the pink sheet apears to be less risky and, when comparing its historical volatility, Clean Seas Seafood is 4.85 times less risky than Atlantic Sapphire. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Atlantic Sapphire ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,497  in Atlantic Sapphire ASA on August 26, 2025 and sell it today you would lose (3,422) from holding Atlantic Sapphire ASA or give up 97.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	88.77%
Values	Daily Returns

Clean Seas Seafood  vs.  Atlantic Sapphire ASA

Clean Seas Seafood

Risk-Adjusted Performance

Weakest

Over the last 90 days Clean Seas Seafood has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Clean Seas is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Atlantic Sapphire ASA

Risk-Adjusted Performance

Weakest

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

Pair Trading with Clean Seas and Atlantic Sapphire

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

The idea behind Clean Seas Seafood and Atlantic Sapphire 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.