Correlation Between Lery Seafood and ABG Sundal

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Can any of the company-specific risk be diversified away by investing in both Lery Seafood and ABG Sundal 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 Lery Seafood and ABG Sundal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and ABG Sundal Collier, you can compare the effects of market volatilities on Lery Seafood and ABG Sundal 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 Lery Seafood with a short position of ABG Sundal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and ABG Sundal.

Diversification Opportunities for Lery Seafood and ABG Sundal

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Lery and ABG is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and ABG Sundal Collier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABG Sundal Collier and Lery 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 Lery Seafood Group are associated (or correlated) with ABG Sundal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABG Sundal Collier has no effect on the direction of Lery Seafood i.e., Lery Seafood and ABG Sundal go up and down completely randomly.

Pair Corralation between Lery Seafood and ABG Sundal

Assuming the 90 days trading horizon Lery Seafood is expected to generate 3.56 times less return on investment than ABG Sundal. But when comparing it to its historical volatility, Lery Seafood Group is 1.65 times less risky than ABG Sundal. It trades about 0.15 of its potential returns per unit of risk. ABG Sundal Collier is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  710.00  in ABG Sundal Collier on September 7, 2025 and sell it today you would earn a total of  95.00  from holding ABG Sundal Collier or generate 13.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Lery Seafood Group  vs.  ABG Sundal Collier

 Performance 
       Timeline  
Lery Seafood Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lery Seafood Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Lery Seafood is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
ABG Sundal Collier 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ABG Sundal Collier are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, ABG Sundal disclosed solid returns over the last few months and may actually be approaching a breakup point.

Lery Seafood and ABG Sundal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lery Seafood and ABG Sundal

The main advantage of trading using opposite Lery Seafood and ABG Sundal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, ABG Sundal 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 ABG Sundal will offset losses from the drop in ABG Sundal's long position.
The idea behind Lery Seafood Group and ABG Sundal Collier 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 CEOs Directory module to screen CEOs from public companies around the world.

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