Correlation Between Sancus Lending and Leroy Seafood

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

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

Diversification Opportunities for Sancus Lending and Leroy Seafood

-0.35

Correlation Coefficient

Sancus Lending  Leroy Seafood

Very good diversification

The 3 months correlation between Sancus and Leroy is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Leroy Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leroy Seafood Group and Sancus Lending 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 Sancus Lending Group 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 Group has no effect on the direction of Sancus Lending i.e., Sancus Lending and Leroy Seafood go up and down completely randomly.

Pair Corralation between Sancus Lending and Leroy Seafood

Assuming the 90 days trading horizon Sancus Lending Group is expected to generate 4.84 times more return on investment than Leroy Seafood. However, Sancus Lending is 4.84 times more volatile than Leroy Seafood Group. It trades about 0.02 of its potential returns per unit of risk. Leroy Seafood Group is currently generating about 0.03 per unit of risk. If you would invest  70.00  in Sancus Lending Group on April 11, 2025 and sell it today you would lose (22.00) from holding Sancus Lending Group or give up 31.43% of portfolio value over 90 days.

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

Sancus Lending Group  vs.  Leroy Seafood Group

Sancus Lending Group

Risk-Adjusted Performance

Weak

Over the last 90 days Sancus Lending Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sancus Lending is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Leroy Seafood Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Leroy Seafood Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Leroy Seafood unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sancus Lending and Leroy Seafood

The main advantage of trading using opposite Sancus Lending and Leroy Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending 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 Sancus Lending Group and Leroy Seafood Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.