Correlation Between Prosafe SE and Schlumberger
Can any of the company-specific risk be diversified away by investing in both Prosafe SE and Schlumberger 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 Prosafe SE and Schlumberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosafe SE and Schlumberger Limited, you can compare the effects of market volatilities on Prosafe SE and Schlumberger 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 Prosafe SE with a short position of Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosafe SE and Schlumberger.
Diversification Opportunities for Prosafe SE and Schlumberger
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prosafe and Schlumberger is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Prosafe SE and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited and Prosafe SE 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 Prosafe SE are associated (or correlated) with Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of Prosafe SE i.e., Prosafe SE and Schlumberger go up and down completely randomly.
Pair Corralation between Prosafe SE and Schlumberger
Assuming the 90 days horizon Prosafe SE is expected to under-perform the Schlumberger. In addition to that, Prosafe SE is 5.22 times more volatile than Schlumberger Limited. It trades about -0.09 of its total potential returns per unit of risk. Schlumberger Limited is currently generating about -0.07 per unit of volatility. If you would invest 3,981 in Schlumberger Limited on November 29, 2024 and sell it today you would lose (111.00) from holding Schlumberger Limited or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosafe SE vs. Schlumberger Limited
Performance |
| Timeline |
| Prosafe SE |
| Schlumberger Limited |
Prosafe SE and Schlumberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosafe SE and Schlumberger
The main advantage of trading using opposite Prosafe SE and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosafe SE position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.| Prosafe SE vs. CARSALESCOM | Prosafe SE vs. Guangdong Investment Limited | Prosafe SE vs. Gladstone Investment | Prosafe SE vs. PennantPark Investment |
| Schlumberger vs. Fuji Media Holdings | Schlumberger vs. Eagle Materials | Schlumberger vs. Plastic Omnium | Schlumberger vs. Hyster Yale Materials Handling |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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