Correlation Between Grupo Carso and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Solstad 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 Solstad 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 Solstad Offshore ASA, you can compare the effects of market volatilities on Grupo Carso and Solstad 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Solstad Offshore.
Diversification Opportunities for Grupo Carso and Solstad Offshore
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Solstad is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Grupo Carso i.e., Grupo Carso and Solstad Offshore go up and down completely randomly.
Pair Corralation between Grupo Carso and Solstad Offshore
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.24 times more return on investment than Solstad Offshore. However, Grupo Carso is 1.24 times more volatile than Solstad Offshore ASA. It trades about 0.16 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about -0.08 per unit of risk. If you would invest 515.00 in Grupo Carso SAB on November 6, 2024 and sell it today you would earn a total of 35.00 from holding Grupo Carso SAB or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Carso SAB vs. Solstad Offshore ASA
Performance |
| Timeline |
| Grupo Carso SAB |
| Solstad Offshore ASA |
Grupo Carso and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Solstad Offshore
The main advantage of trading using opposite Grupo Carso and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Solstad 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| Grupo Carso vs. FIRST SHIP LEASE | Grupo Carso vs. Fukuyama Transporting Co | Grupo Carso vs. Transport International Holdings | Grupo Carso vs. PARKEN Sport Entertainment |
| Solstad Offshore vs. AAC TECHNOLOGHLDGADR | Solstad Offshore vs. Amkor Technology | Solstad Offshore vs. BioNTech SE | Solstad Offshore vs. Playtech plc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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