Correlation Between Odfjell Drilling and InterContinental
Can any of the company-specific risk be diversified away by investing in both Odfjell Drilling and InterContinental 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 Odfjell Drilling and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odfjell Drilling and InterContinental Hotels Group, you can compare the effects of market volatilities on Odfjell Drilling and InterContinental 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 Odfjell Drilling with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odfjell Drilling and InterContinental.
Diversification Opportunities for Odfjell Drilling and InterContinental
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Odfjell and InterContinental is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Odfjell Drilling and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and Odfjell Drilling 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 Odfjell Drilling are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Odfjell Drilling i.e., Odfjell Drilling and InterContinental go up and down completely randomly.
Pair Corralation between Odfjell Drilling and InterContinental
Assuming the 90 days trading horizon Odfjell Drilling is expected to generate 60.26 times less return on investment than InterContinental. In addition to that, Odfjell Drilling is 2.52 times more volatile than InterContinental Hotels Group. It trades about 0.0 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.2 per unit of volatility. If you would invest 937,400 in InterContinental Hotels Group on September 12, 2024 and sell it today you would earn a total of 38,400 from holding InterContinental Hotels Group or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odfjell Drilling vs. InterContinental Hotels Group
Performance |
| Timeline |
| Odfjell Drilling |
| InterContinental Hotels |
Odfjell Drilling and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odfjell Drilling and InterContinental
The main advantage of trading using opposite Odfjell Drilling and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odfjell Drilling position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Odfjell Drilling vs. GoldMining | Odfjell Drilling vs. Playtech Plc | Odfjell Drilling vs. Silvercorp Metals | Odfjell Drilling vs. Gaztransport et Technigaz |
| InterContinental vs. National Atomic Co | InterContinental vs. OTP Bank Nyrt | InterContinental vs. Samsung Electronics Co | InterContinental vs. Samsung Electronics Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |