Correlation Between Romerike Sparebank and Grieg Seafood

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

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

Diversification Opportunities for Romerike Sparebank and Grieg Seafood

0.21

Correlation Coefficient

Romerike Sparebank  Grieg Seafood

Modest diversification

The 3 months correlation between Romerike and Grieg is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Romerike Sparebank and Grieg Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood ASA and Romerike Sparebank 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 Romerike Sparebank are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood ASA has no effect on the direction of Romerike Sparebank i.e., Romerike Sparebank and Grieg Seafood go up and down completely randomly.

Pair Corralation between Romerike Sparebank and Grieg Seafood

Assuming the 90 days trading horizon Romerike Sparebank is expected to generate 2.28 times less return on investment than Grieg Seafood. But when comparing it to its historical volatility, Romerike Sparebank is 2.12 times less risky than Grieg Seafood. It trades about 0.03 of its potential returns per unit of risk. Grieg Seafood ASA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  6,835  in Grieg Seafood ASA on May 7, 2025 and sell it today you would earn a total of  170.00  from holding Grieg Seafood ASA or generate 2.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Romerike Sparebank  vs.  Grieg Seafood ASA

Romerike Sparebank

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Romerike Sparebank are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Romerike Sparebank is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Grieg Seafood ASA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grieg Seafood ASA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Grieg Seafood is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Romerike Sparebank and Grieg Seafood

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

The idea behind Romerike Sparebank and Grieg Seafood 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.