Correlation Between CREO MEDICAL and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and Eidesvik Offshore 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 CREO MEDICAL and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and Eidesvik Offshore ASA, you can compare the effects of market volatilities on CREO MEDICAL and Eidesvik Offshore 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 CREO MEDICAL with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and Eidesvik Offshore.
Diversification Opportunities for CREO MEDICAL and Eidesvik Offshore
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CREO and Eidesvik is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA and CREO MEDICAL 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 CREO MEDICAL GRP are associated (or correlated) with Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between CREO MEDICAL and Eidesvik Offshore
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the Eidesvik Offshore. In addition to that, CREO MEDICAL is 1.19 times more volatile than Eidesvik Offshore ASA. It trades about -0.16 of its total potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.05 per unit of volatility. If you would invest 111.00 in Eidesvik Offshore ASA on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Eidesvik Offshore ASA or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| CREO MEDICAL GRP |
| Eidesvik Offshore ASA |
CREO MEDICAL and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and Eidesvik Offshore
The main advantage of trading using opposite CREO MEDICAL and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.| CREO MEDICAL vs. Vulcan Materials | CREO MEDICAL vs. Hyster Yale Materials Handling | CREO MEDICAL vs. Sumitomo Rubber Industries | CREO MEDICAL vs. Goodyear Tire Rubber |
| Eidesvik Offshore vs. CREO MEDICAL GRP | Eidesvik Offshore vs. BJs Wholesale Club | Eidesvik Offshore vs. H2O Retailing | Eidesvik Offshore vs. BRIT AMER TOBACCO |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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