Correlation Between Grieg Seafood and CmbTech NV

Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and CmbTech NV 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 Grieg Seafood and CmbTech NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Grieg Seafood and CmbTech NV

-0.04

Correlation Coefficient

Grieg Seafood  CmbTech NV

Good diversification

The 3 months correlation between Grieg and CmbTech is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood ASA and CmbTech NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CmbTech NV and Grieg 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 Grieg Seafood ASA are associated (or correlated) with CmbTech NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CmbTech NV has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and CmbTech NV go up and down completely randomly.

Pair Corralation between Grieg Seafood and CmbTech NV

Assuming the 90 days trading horizon Grieg Seafood ASA is expected to under-perform the CmbTech NV. But the stock apears to be less risky and, when comparing its historical volatility, Grieg Seafood ASA is 2.28 times less risky than CmbTech NV. The stock trades about -0.07 of its potential returns per unit of risk. The CmbTech NV is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8,827  in CmbTech NV on July 7, 2025 and sell it today you would earn a total of  393.00  from holding CmbTech NV or generate 4.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.52%
Values	Daily Returns

Grieg Seafood ASA  vs.  CmbTech NV

Grieg Seafood ASA

Risk-Adjusted Performance

Weakest

Over the last 90 days Grieg Seafood ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

CmbTech NV

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CmbTech NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, CmbTech NV may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Grieg Seafood and CmbTech NV

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

The idea behind Grieg Seafood ASA and CmbTech NV 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.