Correlation Between Masoval AS and Proximar Seafood

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

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

Diversification Opportunities for Masoval AS and Proximar Seafood

0.54

Correlation Coefficient

Masoval AS  Proximar Seafood

Very weak diversification

The 3 months correlation between Masoval and Proximar is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Masoval AS and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood and Masoval AS 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 Masoval AS are associated (or correlated) with Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Masoval AS i.e., Masoval AS and Proximar Seafood go up and down completely randomly.

Pair Corralation between Masoval AS and Proximar Seafood

Assuming the 90 days trading horizon Masoval AS is expected to under-perform the Proximar Seafood. But the stock apears to be less risky and, when comparing its historical volatility, Masoval AS is 1.08 times less risky than Proximar Seafood. The stock trades about -0.09 of its potential returns per unit of risk. The Proximar Seafood AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  350.00  in Proximar Seafood AS on September 27, 2024 and sell it today you would earn a total of  3.00  from holding Proximar Seafood AS or generate 0.86% return on investment over 90 days.

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

Masoval AS  vs.  Proximar Seafood AS

Masoval AS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Proximar Seafood

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Proximar Seafood AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Proximar Seafood is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Masoval AS and Proximar Seafood

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

The idea behind Masoval AS and Proximar Seafood AS 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.