Correlation Between Cass Information and LEROY SEAFOOD

Can any of the company-specific risk be diversified away by investing in both Cass Information and LEROY 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 Cass Information and LEROY SEAFOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cass Information Systems and LEROY SEAFOOD GRUNSPADR, you can compare the effects of market volatilities on Cass Information and LEROY 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 Cass Information with a short position of LEROY SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and LEROY SEAFOOD.

Diversification Opportunities for Cass Information and LEROY SEAFOOD

0.56

Correlation Coefficient

Cass Information  LEROY SEAFOOD

Very weak diversification

The 3 months correlation between Cass and LEROY is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and LEROY SEAFOOD GRUNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEROY SEAFOOD GRUNSPADR and Cass Information 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 Cass Information Systems are associated (or correlated) with LEROY SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEROY SEAFOOD GRUNSPADR has no effect on the direction of Cass Information i.e., Cass Information and LEROY SEAFOOD go up and down completely randomly.

Pair Corralation between Cass Information and LEROY SEAFOOD

Assuming the 90 days horizon Cass Information is expected to generate 1.14 times less return on investment than LEROY SEAFOOD. But when comparing it to its historical volatility, Cass Information Systems is 1.6 times less risky than LEROY SEAFOOD. It trades about 0.11 of its potential returns per unit of risk. LEROY SEAFOOD GRUNSPADR is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  674.00  in LEROY SEAFOOD GRUNSPADR on April 23, 2025 and sell it today you would earn a total of  66.00  from holding LEROY SEAFOOD GRUNSPADR or generate 9.79% return on investment over 90 days.

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

Cass Information Systems  vs.  LEROY SEAFOOD GRUNSPADR

Cass Information Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cass Information Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cass Information may actually be approaching a critical reversion point that can send shares even higher in August 2025.

LEROY SEAFOOD GRUNSPADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LEROY SEAFOOD GRUNSPADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, LEROY SEAFOOD may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cass Information and LEROY SEAFOOD

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

The idea behind Cass Information Systems and LEROY SEAFOOD GRUNSPADR 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.