Correlation Between Khiron Life and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Eidesvik Offshore ASA, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Eidesvik Offshore.
Diversification Opportunities for Khiron Life and Eidesvik Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Eidesvik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences 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 Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Khiron Life and Eidesvik Offshore
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Khiron Life Sciences |
| Eidesvik Offshore ASA |
Khiron Life and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Eidesvik Offshore
The main advantage of trading using opposite Khiron Life and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.| Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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