Correlation Between Grupo Carso and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Eidesvik Offshore ASA, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Eidesvik Offshore.
Diversification Opportunities for Grupo Carso and Eidesvik Offshore
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Eidesvik is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Grupo Carso and Eidesvik Offshore
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.74 times more return on investment than Eidesvik Offshore. However, Grupo Carso SAB is 1.36 times less risky than Eidesvik Offshore. It trades about 0.19 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.07 per unit of risk. If you would invest 520.00 in Grupo Carso SAB on October 29, 2024 and sell it today you would earn a total of 35.00 from holding Grupo Carso SAB or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Grupo Carso SAB |
| Eidesvik Offshore ASA |
Grupo Carso and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Eidesvik Offshore
The main advantage of trading using opposite Grupo Carso and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.| Grupo Carso vs. COSTCO WHOLESALE CDR | Grupo Carso vs. FAST RETAIL ADR | Grupo Carso vs. Teradata Corp | Grupo Carso vs. BURLINGTON STORES |
| Eidesvik Offshore vs. Hisense Home Appliances | Eidesvik Offshore vs. Beazer Homes USA | Eidesvik Offshore vs. CENTURIA OFFICE REIT | Eidesvik Offshore vs. Soken Chemical Engineering |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |