Correlation Between Proximar Seafood and Sparebank
Can any of the company-specific risk be diversified away by investing in both Proximar Seafood and Sparebank 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 Proximar Seafood and Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proximar Seafood AS and Sparebank 1 SMN, you can compare the effects of market volatilities on Proximar Seafood and Sparebank 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 Proximar Seafood with a short position of Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proximar Seafood and Sparebank.
Diversification Opportunities for Proximar Seafood and Sparebank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proximar and Sparebank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Proximar Seafood AS and Sparebank 1 SMN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 SMN and Proximar 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 Proximar Seafood AS are associated (or correlated) with Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 SMN has no effect on the direction of Proximar Seafood i.e., Proximar Seafood and Sparebank go up and down completely randomly.
Pair Corralation between Proximar Seafood and Sparebank
Assuming the 90 days trading horizon Proximar Seafood AS is expected to under-perform the Sparebank. In addition to that, Proximar Seafood is 1.71 times more volatile than Sparebank 1 SMN. It trades about -0.27 of its total potential returns per unit of risk. Sparebank 1 SMN is currently generating about 0.06 per unit of volatility. If you would invest 18,060 in Sparebank 1 SMN on March 25, 2025 and sell it today you would earn a total of 776.00 from holding Sparebank 1 SMN or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proximar Seafood AS vs. Sparebank 1 SMN
Performance |
| Timeline |
| Proximar Seafood |
| Sparebank 1 SMN |
Proximar Seafood and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proximar Seafood and Sparebank
The main advantage of trading using opposite Proximar Seafood and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proximar Seafood position performs unexpectedly, Sparebank 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 Sparebank will offset losses from the drop in Sparebank's long position.| Proximar Seafood vs. Ensurge Micropower ASA | Proximar Seafood vs. Norwegian Block Exchange | Proximar Seafood vs. Nordhealth AS | Proximar Seafood vs. Integrated Wind Solutions |
| Sparebank vs. Sparebank 1 Nord Norge | Sparebank vs. Sparebanken Vest | Sparebank vs. Storebrand ASA | Sparebank vs. DnB ASA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |